Date: February 15, 2008
Headline: When is a Good Time to Refinance? CalFHA.com Offers Some Advice.
Article: Ca. Refinancing consistently comes up as a topic of consideration in the mortgage community, but when exactly is an ideal time to make a change to your mortgage? We discuss some scenarios in which refinancing may be a viable and monetarily beneficial option.
Interest Rates Rise
The market often speculates not only when rates will drop, but also when rates will rise. When market speculators begin to anticipate a rise in interest rates, it may be a good opportunity to lock in a new rate. If you have an adjustable rate mortgage and would like to transition to a fixed rate mortgage, we highly suggest refinancing in this climate. This will also enable you to buffer yourself from the rising and falling interest rate environment.
Interest Rates Drop
Keep a constant eye out for dropping interest rates. If you notice that interest rates have dropped a minimum of half of one percentage since you acquired your original mortgage, there may be strong financial advantages to refinance, including sizable monthly savings.
Accelerate Equity
A rise in your income may make you eligible to move your mortgage from a 30-year term to a 15-year term. Refinancing at this point would allow you to cut down on interest costs and accelerate the equity buildup in your home. Note that in this scenario, your monthly payments may likely rise.
For more information on refinancing your home, please contact a CalFHA.com representative.
About CalFHA.com:
Founded in 2003, CalFHA.com is an online mortgage bank that works with mortgage brokers, loan officers, and consumers for processing and brokering loans. We are conveniently licensed in multiple states, including California, Hawaii and Nevada, and are HUD/FHA and VA accredited.