reasons to refinance

Although home mortgage rates have risen recently, refinancing your California home could still be an intelligent tactical move and potentially save you thousands of dollars. Plus, if you’ve owned your property for at least a few years, you may have built significant equity, which can make refinancing a fast, simple process.

  • Lower Your Monthly Payments

    The rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 1%.

  • Switch to a Fixed-Rate or Adjustable-Rate Mortgage

    This can make sense depending on how long you think you’ll live in your current home. ARMs start with lower rates but adjustments can raise the rate. Fixed-rate mortgages remove the risk of future interest rate hikes.

  • Shorten Your Mortgage Term

    Shortening your mortgage term (i.e. from 30 years to 20, 15, or 10 years) may result in higher payments each month, but you’ll build equity more quickly and could potentially pay off the loan in fewer years.

  • Tap into Equity

    You can use it to get cash. This might be a good option if you need the money to pay for a large purchase such as your child’s college education or to put an addition on your home.

  • Consolidate Debt

    Use the equity in your home to get cash and pay off your high-interest debt or to make one consolidated monthly payment instead of multiple smaller payments to different creditors.

  • Switch from a Jumbo Loan

    In a jumbo loan? if you’ve now paid down the balance to less than $484,350, you may be able to refinance with a regular loan, which could mean you’ll qualify for a lower interest rate.

why Refinance with Santa Fe Mortgage

Could refinancing your home mortgage be right for you? We can provide the facts you need to make an informed decision. Apply with us today and get a FREE, no-obligation consultation!

 

things to know

The costs of refinancing typically total 2% to 3% of the loan’s principal. Though many banks advertise no-cost mortgages, what they’re really saying is that you can get a mortgage with no out-of-pocket costs. The closing costs are then added to the loan balance.

When considering a refinance, you’ll want to calculate whether the savings you get from a lower interest rate will offset the costs you’ll incur. You’ll likely need to remain in your current home for a minimum of one year to recoup those costs.

Bonus Tip – If you can afford it, consider directing the amount of money you save from a refinance toward extra principal payments. Your monthly mortgage amount would then stay the same, but you’ll build equity more quickly and can potentially pay off your home sooner.

Why Refinance with Santa Fe Mortgage

Where we shine, isn’t only in the wide range of loan products we can access, it’s also in our knowledge and expertise. Our mortgage brokers are industry experts, second to none. They’re well-qualified to advise customers, whether you’re a first-time homebuyer or experienced homeowner.


Getting a home loan can be a complicated process, with lots of steps and often lots of challenges. You want someone who will go to the mat for you, explore every option, anticipate every problem, and be available to you 24/7 to answer your questions and resolve any issues as they arise. We’re 100% committed to doing whatever it takes to secure the best loan for your needs.