Does it ever feel like your home loan is just too expensive? Do you look at the current interest rates in the newspaper or on the news and wish you could take advantage of them? The good news is you might be able to. By refinancing in Brentwood, you can lower the interest rate terms of your mortgage and save money each month. Use those extra funds to retire debt, buy new school clothes for the kids, put into savings, or take a dream vacation. Or, you can use them to put you into a better financial position to avoid foreclosure if you are struggling to make your payments on your current loan.

Refinancing in Brentwood is essentially taking out a new loan to pay off the old one. The terms of the new loan are more favorable with a better interest rate and perhaps even a shorter term. You might also be able to get out of a variable rate loan and lock in a lower fixed rate. The house is still the item put up for collateral, just as it was for the first mortgage.

For some loans, refinancing doesn’t always help. Some mortgages have a pre-payment penalty that will end up costing too much compared to the potential savings if the loan gets refinanced. It also will not benefit you if your credit score has declined in the last few years. That lower score translates to higher interest.

For those who are unemployed, they will probably not qualify for a refinancing plan. Lenders look for a steady source of income that has existed for a while before they will consider the application. In these cases, a financial planner may be the best option to help work out a better financial map. Refinancing in Brentwood is still a good plan for some, but it’s not a solution that fits everyone.

If you do qualify for a refinancing plan, it will take some careful calculating to see if the fees will be so great that they wipe out any savings. Expect to pay about 2% of the amount of the loan in fees. There are also costs for the home appraisal, the application, and the home inspection. Depending on the lender, there may be a requirement to carry mortgage insurance that wasn’t on the original loan.

Once those costs are calculated, then you can evaluate how much you can save on your loan. It may take a few months to start realizing any savings, so you will want to factor that into your budget. If you are on a time crunch, another option might be better for you. A financial expert can help you sort out all of the costs and possible savings to see if refinancing in Brentwood is for you.

If you live in the east San Francisco Bay area, including the cities of Antioch, Brentwood, Concord, Danville, Discovery Bay, Pleasant Hill, San Ramon, or Walnut Creek, contact Delta Lending. We’d love to sit down and go over your financial situation, and see if refinancing is right for you.