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Mortgage Refinancing Aliso Viejo

Deciding to refinance your mortgage isn't something you should take lightly. It involves using a new mortgage loan to replace an existing one. So, you could end up making your financial situation more complicated if you're not careful. Before going through the process, there are a few things you need to know about mortgage refinancing. Here is our guide to mortgage refinancing.

Is Refinancing Appropriate For Me?

You have to figure out why you want to refinance your home before deciding if mortgage refinancing makes sense for you.

  • Do you want to speed up your mortgage repayment or take advantage of low-interest rates?

  • Are you looking to free up cash by using the equity you've built in the house?

  • Do you want to get rid of credit card debt by rolling it into a newly refinanced mortgage? 

  • Do you want to take advantage of high home equity?

  • Are you looking for a shorter term, such as replacing a 30-year mortgage with a 15-year mortgage so that you can pay less interest rate and off faster?

  • Do you want to change from an adjustable-rate loan to a fixed-rate mortgage?

  • Do you want to move from two to three mortgages to one?

Understanding your vision will help you select the right mortgage. However, we urge you to be upfront so that you can make the right decision when refinancing your mortgage.

What Are My Options When Refinancing?

 There are different types of mortgage refinancing options homeowners can choose from depending on their financial situation. Here are some of the common mortgage options:

Cash-out refinance

 A cash-out may make sense to improve your general financial situation if your home's appreciation and you've built significant equity through your monthly payments.

No cash-out refinance

You are refinancing the unpaid balance on your loan with a no cash-out refinance. 

Enhanced relief refinance

An Enhanced Relief Refinance might make be the perfect choice for you if you want to refinance your mortgage, but the ratio of your loan-to-value exceeds the maximum permitted for a standard no cash-out mortgage refinance program.

What Are The Costs Of Mortgage Refinancing?

The cost of refinancing your mortgage varies based on your banker and lender, and they can quickly add up. Here are some examples of refinancing expenses:

  • Application fee:  Most lenders or banks charge an application fee to cover the cost of checking a borrower's credit report and your loan processing.

  • Loan origination fee: Lenders or banks charge this fee to prepare and evaluate a mortgage loan.

  • Appraisal fee:  Appraisal Management Company charges an appraisal fee. An appraisal service calculates the total worth of your home.

  • Title and insurance search: This charge covers the cost of reviewing the public record of your home, making sure that no one has a claim on the property.

Is Mortgage Refinancing Right for You?

Don't handle it yourself if you're still on the fence if the time is right to refinance your mortgage. Contact McLellan Team at 949-669-1100 for help Mortgage Refinancing Aliso Viejo.

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