Owning a home in the Oak Shores or Heritage Ranch communities on Lake Nacimiento is a great investment and one that you’ll enjoy for years.  Perhaps you’ve lived in your Lake Nacimiento home for years and feel that you could get a lower mortgage rate if you refinance in today’s market.  You’ve heard rumors of the markets’ low mortgage rates and would love to cash in on the deal.  Who wouldn’t want a lower mortgage each month?  However, while you’ll see the savings each month; there are still a few things to consider before refinancing your Lake Nacimiento home.

Take a look at these six tips to see if you’re ready to refinance your home in Oak Shores or Heritage Ranch!

1. Credit score and income– Most banks today’s market will require you to have a minimum credit score of 620 in order to refinance.  You will also need to prove that your household finances have been stable.  If unemployment or other issues have come up that have decreased your finances significantly; you’ll find it hard to refinance.

2. Interest rates– Refinancing right now is great for buyers whose current rates are above 5.5% and are hoping to save on their monthly mortgage costs.  For homes in Oak Shores or Heritage Ranch; you could potentially save a percentage point or more on an outstanding mortgage.

3. Costs– Refinancing your home will cost you typically 2% of the new loan amount.  This includes application, appraisal and inspection fees. Included within refinancing costs is the new escrow account you’ll need to fund. The lender will set up this account for home-insurance and property-tax payments from which they’ll draw annually.  Want to avoid this fee?  Use the same lender you used for your initial mortgage.  Their only costs are limited to issuing new paperwork, so they’re able to keep costs low and can oftentimes speed up the process. Another option is a good faith estimate. Your Lake Nacimiento Real Estate agent can help you determine which option would work best for your home.

4. Adjustable-rate mortgages– Determining whether you’d like to go with an adjustable-rate mortgage or a fixed-rate mortgage can be tricky.  An ARM is great in today’s market as you’ll cash in on the current lower rates.  However, a fixed-rate mortgage ensures that your rates will remain stable and won’t rise if the market changes.

5. ‘Underwater’ homeowners– Today’s housing market has left around 11 million homeowners “underwater” meaning they owe more on their home than it’s actually worth.  They will have a hard time refinancing and can only do so through a federal program. Your Lake Nacimiento Real Estate agent will help explain the option of a “short refinance” that was launched last year by the FHA.

6. Greater pricing disparity– Based on your current credit score, the rates offered for refinancing can vary greatly. California lenders will look at the state’s average loan-to-value ratio and the percentage of homes with negative equity.  The higher the percentage of these homes, the higher the rate a borrower will most likely be offered.

These six tips should help you in determining if refinancing your Oak Shores or Heritage Ranch home now is right for you.  Of course if you have any questions; feel free to contact me anytime!  I’m here to help the Lake Nacimiento community in any way possible!  If you’re considering refinancing in order to sell your home on Lake Nacimiento and haven’t found a Lake Nacimiento Real Estate agent yet; let me know!  I’ve helped many Oak Shores and Heritage Ranch homeowners successfully sell their Lake Nacimiento home in a timely and stress free manner.  I’d love to help you do the same!

I look forward to hearing from you!

Grace Borzini
Your Local Lake Nacimiento Real Estate Expert
Oak Shores Realty

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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.

Please let us know how we can help!