How to Refinance Smart

California’s most Trusted Mortgage Broker. Teresa Tims, President of TDR Mortgage and Real Estate Group in Upland, California. TheSoCalLoanPro.com.

I want to share with you how you can refinance smart. In a down rate environment, one should take advantage of the opportunity that is before you and in doing so, you can take advantage of that smartly so that in the future you can also benefit from doing another refinance and possibly even another.

Refi Smart, keep it low cost, let it pay for itself and do it again in a year when the rates go even lower. Rates will go lower but take your savings today and position yourself for tomorrow.  

So let me share with you my top secrets on how to do that. When you’re refinancing, one of the biggest things that you want to get your bang for your buck. You want the refinance to pay for itself.  (We’re going to go into how long you’ve had your loan later.) That’s a really, really important consideration. But let’s just assume you’ve just had it a short time, maybe a couple of years. Starting over is not that big of a deal when it makes sense and you can save yourself money monthly.

Cost to refi is 3500.00

Savings is 300.00 per month, 3500/300 =  11.66 

Therefore, this loan pays for itself in Under one year.  PURE FIREEEEE

That is a smoking deal and so if a loan is going to pay for itself in under one year and you keep it for one year, then you didn’t actually waste that $3500 that you paid for the loan, now did you?

So let’s say usually people that have their loan, it’s very, very uncommon that you would have your loan only six months and refinance. In cases, I’ve had a handful of those cases lately where it’s, gosh, six months ago the rate was 4.5 and today we’re streamlining into a 3.5% rate, so we’re doing that.

So if I were to take you into a 3.5% rate, we’d want to do so in a fashion where you’re not adding that much to your principal balance so that when the rate goes down to 3% or 2.8 or 2.75, you could do it over again and you can save money.

So that my friends is how you can refinance smart. If you’d like to know more about refinancing or purchasing smart in Southern California, pick up the phone and give me a call. Teresa Tims, TheSoCalLoanPro.com, at (909) 920-3500.

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