Refinance a Mortgage Loan in the San Francisco Bay Area
Monday, June 22, 2009The Chicago Tribune recently ran an article about steps you should take if you're considering to refinance your mortgage. They apply to San Francisco as well and include:
- Know your current interest rate and loan terms. It may be possible to get a lower monthly payment from refinancing, but the interest rate may be the same or even higher, only the payments are stretched out over a longer time. You end up paying much more over the lifetime of your mortgage.
- Know the real current value of your property. Home Prices in San Francisco have fallen more than the national average.
- If you're underwater, figure out how much. Refinancing may not be an option if your mortgage is more than 105% of your home value.
- Get copies of your credit history including your credit score from all three credit bureaus. The Equifax credit score is usually the closest to the one used by many lenders.
- Shop around. Many lenders increased their fees, so try national and online lenders, but there are also many good local credit unions and mortgage brokers in the San Francisco bay area. Don't overlook them.
- Look at the big picture, not only the interest rate. Take into account fees and how long you will need to make back those refinance fees with your monthly savings.