San Diego Refinance Mortgage Rates
The changing world economy and frequent changes by the Federal Reserve have resulted to serious changes in the value of homes around San Diego. To protect their homes from the fluctuating rates, most homeowners around the city have decided to refinance their mortgages. This is an intelligent move to benefit from the falling interest rates while creating some money to clear other debts. Homes that have accumulated equity after a number of years stand the best chance of attracting higher refinance rates. However this does not mean new homeowners cannot access the facility. Everybody who has been remitting payments for a house for a period of two years can refinance the loan in San Diego.
Variable that Dictate San Diego Interest Rates
There are a number of variables that determine the interest rate on your San Diego mortgage. The main one is credit performance. All lenders carefully scrutinize your past credit record when determining the interest rate they will charge on your mortgage. A poor credit record will without doubt attract a higher interest rate for your loan. The other factor is the point scheme. Refinance mortgage rates in San Diego are based on a point scheme that is preset. The rule is that the more points you earn the less the interest rate on your mortgage. Points are earned depending on the amount you pay as down payment at the closure of the agreement. The higher the amount you pay, the more points you earn resulting to reduced interest.
Refinancing Options in San Diego
If you have a home in San Diego, you have several refinancing options at your disposal. The main ones that you will find in many banks and mortgage companies are the 15 year and 30 year fixed rate mortgages. It is good to consult widely on the pros and cons of each option in order to make the best decision. The 15 year rate is a good option as you become debt free a bit faster. It also enables you to own your home more quickly. Interest on this mortgage is a bit lower of course depending on other factors that vary from bank to bank. The downside of this mortgage is that the monthly payments are a bit high.
30 Year Fixed Rate Mortgage
The 30 year fixed rate mortgage is the best choice for most ordinary homeowners in San Diego. This is because the monthly payments are very low and are spread over a long time. This makes payment easy.
Refinance loan options
FHA refinance loans
Fannie Mae refi plus program
15 year refinance mortgages
20 year refinance
Streamline Refinance Program