California Platinum Loans Advice: How Can We Know It’s Financially Right for Us to Refinance Our 30 Year Mortgage?

Refinancing a mortgage is a lot of work. But if you’re thinking about it, there are a few situations where your financial results will be well worth the effort. If you’re wondering if it makes financial sense for you to refinance your 30-year fixed rate mortgage, we’ve put together some factors to consider that will influence your decision.

Can You Lower Your Mortgage Interest Rate?​

Even if you lower your mortgage interest rate by less than 1%, you could benefit financially by refinancing your 30-year mortgage. If you’ve got a substantial mortgage, a rate reduction of .25% could save you money. You could be surprised to learn that your closing costs will be modest. The money you could save over the life of your mortgage will add up to more than just pocket change. If you have less than 20% equity in your home, you’ll also need to include mortgage insurance in your calculations.

You may also be able to locate refinancing options with low to minimal closing costs, including a VA Streamline or IRRRL refinance loan for Veterans and an FHA Streamline refinance loan.

Should You Refinance an Adjustable Rate Mortgage (ARM) to a Low Fixed-Rate Mortgage?

As this article is written, home loan interest rates are low, and few people are opting for adjustable rate mortgages (ARMS). But if you have an older ARM, it could make financial sense for you to refinance it to a low fixed-rate 30-year mortgage. There’s no guarantee that mortgage interest rates will remain low. Locking in your interest rate at a low APR could make excellent financial sense.

Can We Refinance Our Mortgage to Reduce Our Debt Burden?

f you have significant equity built up in your home, you may be able to use a cash-out refinance to use the funds to pay down high interest-rate debt. If you’re paying off high-balance, high-interest rate credit cards, you could save thousands of dollars by using a cash-out refinance. This option makes sense only if you have enough equity in your home and can continue to keep your monthly mortgage payments affordable.

Finally, you may be able to refinance your mortgage by shortening the term of your loan. If you plan to stay in your home and can afford the monthly payments on a 15-year mortgage instead of a 30-year mortgage, you will save thousands of dollars by cutting the loan term in half. Contact us here at California Platinum Loans to find out if a refinance makes financial sense for your particular situation.

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How Can 30 Year Jumbo Mortgage Rates Help You Buy High-Priced Homes?

First, what is a jumbo loan? Jumbo loans are any mortgages that exceed the federal loan servicing limits set by Freddie Mac and Fannie Mae. In Los Angeles and Orange counties, the conforming loan limit is $726,525 for a single-family home. Any amount over that is a Jumbo mortgage.

How Much Home Can Jumbo Mortgages Buy?

You can find jumbo mortgages to buy homes up to $10 million, $15 million, $20 million, even $50 million. You probably already know that the majority of people buying homes in those price ranges don’t document their income with pay stubs. They typically qualify for a jumbo mortgage to buy a multi-million dollar home with business income, investments, and other earnings.

Can I Get a 30-Year Jumbo Mortgage to Buy a High-Priced Home?

A variety of jumbo mortgages are available as 30-year fixed rate mortgages. You will also find 15-year fixed rate jumbo mortgages and adjustable rate jumbo mortgages, although with interest rates as favorable as they are right now, an ARM may make sense short term and possibly long term also.

 You’ll even find interest-only jumbo mortgages, and if you know your business plans will make this type of mortgage work it may be a smart financial move. You may find jumbo loans to finance the purchase of a $1M, $2M, or a $10 million to $50 million home.
 

Do I Need to Be a U.S Citizen to Buy a High-Priced Home with a Jumbo Mortgage?

No, not at all. You can find jumbo mortgages for permanent residents, first-time homebuyers, and permanent and non-permanent resident aliens. So foreign nationals (non US Citizens) can also get jumbo loans on for mega multi million dollar properties such as those up to $50 millon. You can hold title on the home as an individual, a joint tenant, tenants in common, community property, or even in a company such as an LLC or a Corporation. You can also purchase and own the home as part of a revocable trust (living trust).

 If you have income and assets from business, property and investments, you can use a 30-year fixed rate jumbo mortgage, or jumbo ARM mortgage loan to buy a high-priced home in Los Angeles and Orange Counties — or anywhere else you want to live. California Platinum Loans is here to help you finance that jumbo and super jumbo loan purchase. Find out how we can help.
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What Should I Look For in a VA Mortgage Specialist?

Whether you’re buying your first home with a VA home mortgage or your second, third, or fourth home, it’s important to find a mortgage specialist who understands your needs. The specialist should be knowledgeable in all areas of your VA home loan benefit. They should be able to guide you through the process from loan origination to closing.

Should my VA mortgage specialist communicate regularly with me?

Yes! Look for a specialist who’ll keep in touch with you and keep you updated throughout the process.

Should they have a secure way to send and receive sensitive information?

Yes! Look for a mortgage specialist with secure document storage both in-person and online. Information security is one of the most important concerns in the real estate and lending industries. Your mortgage specialist should be able to assure you that your personal information will be kept securely.

How long will it take for my loan to be approved, processed, and closed?

Look for a mortgage specialist who is busy and experienced in closing several loans. In high-volume lending markets, your loan should be able to take 30 days to close and fund with a few exceptions.

Should the loan specialist be able to explain all the details of the loan to me?

Of course! You have some costs that won’t change regardless of who the lender is, like your VA funding fee. You’ll also have costs that can vary, like closing costs, origination charges, points, and more. Your loan specialist should be able to explain the advantages and disadvantages of the loan if you’re pre-qualified and comparing two or more lenders.

 Your lending specialist should be able to tell which lenders and loan products are a good fit for your credit and income profile. While the VA doesn’t require lenders to have a minimum credit score, most VA lenders require you to have a score of 620-640 or better for more competitive rates. However, we can also refinance VA loans with FICO scores of 520-550, but the interest rates are higher. You should also meet debt-to-income ratios, however, for IRRRL or streamlined VA refinance loans with no cash out the debt to income or DTI ratios are not really that important, as the main focus is are we saving the veteran money and lowering their monthly payment and/or interest rate. If it’s an improved loan situation for the veteran borrower than it can move forward regardless of how high the debt to income ratio’s are.

 Your VA loan specialists at California Platinum Loans are easy to work with and are here to talk with you regarding your particular situation. Being committed to your success in getting the right VA home mortgage for your needs. Find out how to get approved now.

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