Low Rates Refinance

Rates Low for Costa Mesa Real Estate

I get lots of people asking me if it makes sense to refinance their homes with today’s rates. My question back to them – what’s your situation? How long until you pay off the mortgage? Do you plan on staying in the home for a long time? Can you benefit from a reduced payment?

Every situation is different for Costa Mesa real estate owners. Rates as of today are about 3.75% for a 30-year fixed mortgage under $417,000 loan amounts, and about 4% for those with loans under the higher conforming limit of $625,000.

Here are some quick thoughts from the California Association of Realtors, and they make a lot of good points for Costa Mesa real estate owners:

When to refinance again

Those who refinanced their mortgages a year or so ago can benefit from Low Rates Refinance when interest rates averaged just below 5 percent for a 30-year fixed-rate loan, may be wondering whether it’s time to refinance yet again now that rates are at least a full percentage point lower.

As of Thursday, according to Freddie Mac’s weekly survey, the average rate on a 30-year loan was 3.83 percent, down from 4.63 percent a year ago, setting a record low.
According to financial planners, homeowners considering refinancing first should delve into their financial goals, specifically the length of time they plan to live in the home.
Some homeowners decide it makes more sense to stay with their current mortgage, especially if the savings are small or they plan to move within a year or two. According to one financial planner, when homeowners refinance, they’re not building equity; they’re starting at the beginning of the amortization tables.
Amortization schedules work like this: In the first few years, almost all of the payment goes toward interest, so the longer the homeowner has the loan, the more is put toward the principal.
Those who refinanced in the last year or two don’t have to consider amortization tables, but they do need to know their equity position – and when refinancing would begin to pay off.
To calculate that, start with a rundown of all the closing costs, then divide the closing costs by the amount expected to be saved on each monthly payment.
Depending on the lender, most Costa Mesa homeowners likely need to have at least 20 percent equity, and maybe a little more, if they want to wrap closing costs into the new mortgage.

Need help? Want to know what might be the best thing to do? I don’t do mortgages but I would be happy to give you a bit of advice for your situation. I also have lender partners that I can refer you to for the best rates.

Colin Delaney – – – (714) 743-9882 – – – E-mail me