El Monte, CA is a city with a population of 21,000. The median income for an El Monte household is $34,656, and in 2006, Money Magazine named El Monte one of the 10 best places to live in America. El Monte offers high incomes, low taxes and a high employment rate. El Monte also features many movie theatres, restaurants, bars, golf courses, museums and other attractions. El Monte may be the place you are looking to call home or you may already live here. Either way, we can help you with your mortgage, refinance, or home equity loan.
Mortgages in El Monte
If you’re an El Monte homeowner craving financial change, it could be time to refinance your mortgage or home loan. If you have just found the perfect home in El Monte , then you may be trying to find the right mortgage. Either way, we can help you to make the right decisions.
Closing Costs and Fees
Fees are a part of any home loan product – whether it’s a traditional mortgage or a refinance, there are fees involved.
When you refinance your mortgage, you will pay off your original m ortgage and sign a new loan. With a new loan, you will have to pay many of the same closing costs as with your original mortgage. These costs may include discount points and other fees. You may even be charged a penalty for paying off your original loan too early, so find out about this before you refinance.
If you are looking for a new loan, find out if there is a prepayment penalty in case you decide to refinance in the future. You should also look into all of the hidden costs of the loan. Ask about application fees, appraisal fees, insurance fees, and others. Look over your Good Faith Estimate carefully to see exactly what you’ll be paying for.
The total cost of getting a mortgage or a refinance loan depends on the interest rate, number of points and other costs involved in obtaining the loan. In order to get the lowest rate offered, most mortgage companies charge you several points and the total cost can run between three and six percent of the total amount of the loan. For example, for a $100,000 mortgage, the company might charge you between $3,000 and $6,000. Some companies will offer zero points, but at a higher interest rate. This can reduce your initial cost, although your monthly payments may be somewhat higher. Talk with your lender about all of the costs and fees to determine exactly what you might be paying.
Why Refinance?
If there are costs involved, why might you want to refinance? Many borrowers want to refinance in order to shorten the term of their mortgage. Some new borrowers also want a term shorter than the traditional 30 years. Remember that even at low rates, a shorter term can mean higher monthly payments, but you will earn equity faster and pay considerably less in total interest over the life-span of the mortgage. You can also find mortgages or refinance loans customized to a certain number of years other than the common 15 and 30-year terms. Keep in mind that the loan term is a variable that you can work with.
Another reason some borrowers choose to refinance is to lower the interest rate on their original loans. This can save you thousands over the course of the loan and if the rates are right in your area, it is certainly a reason to give a lender a call.
Using Home Equity
One other way to customize the refinancing for your home loan is to get a new loan for more than the balance that’s left on your old mortgage. This means borrowing against your home equity, or "cashing out" in mortgage terms. Thanks to favorable interest rates, you may be able to do this without increasing your monthly payments.
The best place for your extra cash is to pay off any higher rate loans you may have. For example, if you currently owe $15,000 on a car loan at 10% interest and are making minimum payments on $10,000 in debt on your credit card at 17% interest, your monthly payments would equal $680. Imagine that you refinance your mortgage, taking out an extra $25,000 to pay off your car and credit card loans. The result at a 7.5% interest rate would only add $175 to your monthly mortgage payment, so you would come out $505 ahead each month. You could also look into a separate home equity loan or line of credit to access your equity for paying off other debts. And, o f course, not all the extra cash has to pay off debts. You might want to build a garage, buy a new car or other vehicle, or take a dream vacation.
For more details on mortgages, home equity loans, or refinancing, all you need to do is fill out the form below. A lender will contact you ASAP to answer all your home loan questions.
