5 Things to Think About Before Refinancing Your Santa Cruz Home

Posted by Lauren Spencer on Tuesday, August 25th, 2009 at 1:13pm.

If you’re thinking about refinancing your Santa Cruz home, you might want to think about a few other things first.

1.  Are the mortgage rates higher or lower than when you first financed your house?  If current mortgage rates are lower, refinancing might be a good idea.  If they’re higher, however, you should reconsider.

2.  Why are you refinancing?  If you’re trying to get a better mortgage rate, it might be a good idea.  However, if you’re refinancing to pay off credit cards or go on vacation, not only should your probably not refinance, you probably shouldn’t be going on vacation, either.

3.  Do you currently have a fixed rate or an adjustable rate mortgage?  Since mortgage interest rates are still rising, it might be a good idea to refinance to a fixed rate if your mortgage interest is adjustable.  However, if you have a low fixed rate mortgage on your Santa Cruz home, it probably would be better to stay with it.

4. How much longer do you plan to stay?  If you plan to stay in your Santa Cruz home for five years or longer, refinancing might be a good idea.  However, if you plan on a shorter amount of time, due to the cost of refinancing, you may end up losing money.

5.  Do you have the money for refinancing?  Refinancing a house costs time and money.  The fees for refinancing can be a hefty $3,000 or more, which means you may not save any money for two or three years after refinancing your home.

If you need help refinancing your home or financing a new home, I can help.  Call me today at 831.662.6522 or email me at lauren@laurenspencer.com for more information.



Refinancing your Santa Cruz home

Current mortgage rates

Fees for refinancing

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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