3 Reasons You Should Refinance Your San Diego Mortgage in 2021
(Please note: Below is a (not so great) word for word transcription)
Hey, what’s going on? It's Scott Taylor, with www.sdrehunter.com
Licensed in the state of California for both real estate and mortgages, with an emphasis on San Diego.
Okay now, you're in San Diego, you own a house right now.
Things aren’t getting any less expensive, things are getting more expensive; gas is getting more expensive, bills are getting more expensive, you might have a car loan or credit cards etc.
So, I went and create a video.
Here's 3 reasons why now might be a great time to refinance your San Diego mortgage.
Here's a quick rundown of our list:
#1 Where are rates going?
Now, I won't be one hundred percent honest, I will give you the exact answer.
It’s going to go one of three ways.
Rates are either going to go down, they're going to stay the same or they're going to go up, okay.
Anybody who tries to tell you anything else, shut them off.
Sure, it seems like rates will probably go up because we know the Feds going to raise them.
It seems like it's going to happen but maybe it's not.
This reminds me of two thousand and five and six and seven, when people said housing prices in San Diego will never go down, they’re are never going to crash, right.
Rates could never get lower.
Property prices crashed, prices went down.
Then people said, property prices will never get back to that same level again.
Guess what? They did.
Once upon a time, they said rates will never go down.
They went down further.
Then they said, they have to rise.
So, here's what's going to happen; who knows, they might stay the same, they might drop, they might go up.
So, what I would say is, if you kind of like where rates are now and you want to get locked in or maybe you were higher before and you might want to refinance now.
Or maybe you think it's a good time to do it.
I would say do it, once…if you know what it is today, don't count on tomorrow.
#2 Debt Consolidation.
I do a lot of refinances for debt consolidation.
Now, it's just not about lowering your rate or looking at your mortgage payment less.
Deal with the financial, like a mortgage consultant like me, where we look at big picture.
When I pull your credit and I see your debts, guess what?
Maybe your mortgage rate is pretty good, but you have credit card debt, you have student loan debt, you have car loans, you have home improvement loans, you have all the other stuff.
So, if we're to look at big picture, what are your total monthly debts and you have equity in your house.
And we could refinance and do debt consolidation and consolidate all those other bills that are higher in payments to just one mortgage payment, which by the way maybe tax deductible or a tax write off and of course talk to your C.P A.
That might make more sense right.
So, think about the big picture; if we were to pull your credit report today and look at all your outstanding bills and you own a house now and you have equity now, it might make sense to do debt consolidation, consolidate all your debt, even if your rate goes up, if we're looking at all monthly payments.
# 3 - Have a Rainy Day Fund.
Here are some things I remember; the last boom right, when everybody thought prices would continually go up and they had all this equity in their house just sitting there, they thought it was just sitting there in equity, guess what?
If property prices go down, you lose all that equity.
So, here’s a thought, what if you do cash out, you have equity in your house, it's just sitting there, you’re not touching it.
What if you refinanced one mortgage, the first mortgage and you take that money out and you put it someplace?
You put it in a checking account or a savings account or money market or something.
So, it's sitting there as a just in case cozy.
If you're watching this, what if something happens and you have no fallback plan?
No plan B if it was?
Money sitting there, you think house prices will go up.
Why don't you tap into that?
So, now you're probably wondering, well when would be a good idea?
So, as a general rule of thumb, if we can go up to about 80% total loan to value, if you have a Conforming mortgage, so don't forget.
Anything from that $649,750 or less if it's conforming we can go up to about 80% loan to value for cash out and or debt consolidation.
If you have F.H.A, of course you can do an F.H.A streamlined refinance could, which is just written term to try and drop your rate, but that might not make sense on the big picture thing.
Maybe it would be a good idea to do a cash out of debt consolidation.
You could go up to 85% for F.H.A.
Now, we can get little trigger passes of course, because we know prices in San Diego are expensive.
If we wanted to do Jumbo, we could go to about 85% or 90% and same thing if we did a Piggyback, we can go up to about 85% to 90% LTV.
So think about that.
You can come on to my website - www.sdrehunter.com
And you can see what’s you approximate value of your house, approximate.
Then you can look at your loan and say “hey, if my property is worth [I'm making up a number] $800,000 and I can go up to about $640,000 on it and my current loan is $400,000, you have $240,000 just sitting there.
Consolidate your debts, do cash out and walk in a great rate.
If you like what I had to say today, go to my website: www.sdrehunter.com
Over five hundred articles about mortgages, mortgage rates, the best calculator and of course signed up to get real estate listings, stay up to date on what's active, pending and sold in your area.
Maybe you own a house, that’s why you’re watching this video and it be a good idea to know what values are.
That's a great idea or better yet, get started.
Go to www.scottsloanapp.com, in twenty minutes or less, from your computer, smart device or cell phone, you can fill up the application.
As soon as you're done, I'll get a text alert, I'll call you up, I'll say hey, this is looking pretty good, I'm going to run your credit, we’re going to chat about that.
From there, you can easily upload the documents on my secure Web site, things that you already know that you need; drivers’ license, social security card, last two years’ tax returns and W2s, last four months’ paychecks, last two months full bank statements, all pages. If you have 401K, IRA etc.
Then depending where your current report says, we might need a few more things, Chapter seven or Chapter thirteen or foreclosure or short sale.
Go to www.scottsloanapp.com, you get started. I look forward to helping you soon.
Leave me a comment below – or, contact me here.
Your Refinance Insider,