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Tips for First-Time Home Buyers

Our loan experts can guide first-time home buyers, better understand all their mortgage options to have a complete understanding of the process that entails purchasing a home. Your unique circumstances, budget, and needs will help us develop a plan to assist you better and purchase your desired home. Moreover, you will feel confident and in control of your journey as a new homeowner. Read more

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How To Lower Your Mortgage Rate Without Refinancing

Mortgage interest rates have seen record lows for the better part of this year, thus encouraging a surge in mortgage refinancing. However, we must still acknowledge that not everyone wants to replace their current home loan. Borrowers often wonder whether there’s a possibility of lowering mortgage interest rates without necessarily refinancing. Yes, you can lower your mortgage interest rate without refinancing, although the options available may be very limited. If you are facing financial downtime, you may qualify for a mortgage rate reduction. But most times, you’ll either need to turn to a new route to cut your mortgage costs or work towards getting a refinance approval. Here, let’s review some steps that you could leverage to lower your mortgage rate without refinancing.

1. Simply Call and Request a Lower Mortgage Rate

This may not necessarily be a conventional step, but it has worked for many people. We’ve heard of several cases where folks obtain lower interest rates just by calling their mortgage lender and requesting one.

Of course, you’ll need to indicate during your call that you do not want to refinance with them; otherwise, they may take you towards that route. Perhaps, it won’t be as easy as you probably want, but sometimes it’s just a matter of being direct with your request if you want a lower mortgage interest rate.

2. Speak to an Expert To Help You Do a Rate Review

Another option that you could try is speaking to an expert about your chances. Most South Florida mortgage lenders would be ready to look at your situation and offer recommendations based on current trends. Here at Pacific Lending Group, we have experts that can walk you through the rate reduction process by conducting a rate review for you. You can leverage our lender review service to compare your interest rate to new customers’ rates. This service helps you to assess your likelihood of being eligible for lower mortgage rates.

3. Hire a Mortgage Broker to Help You Negotiate

If you would feel more comfortable leaving the negotiation to an expert, then do. Mortgage brokers would usually help to conduct a rate review and tell you your chances. They’ll also justify to your lender why you should get a lower rate. However, we recommend opting for a professional broker. The best way to know whether a mortgage broker can help you handle the job is by looking at their records. Check what past clients are saying about their services. Ask about their success rates and how they go about the process.

4. Look Into a Recast as An Alternative For Refinance

Loan recasts are not as popular as refinancing, but they can also lower the monthly payments on your mortgage. The only difference is that you’ll need to adjust the amortization schedule of your loan. One of the most significant benefits of choosing non-refinance options is that you won’t need to reset the clock on your mortgage.

Conclusion

That’s it, some practical steps to follow if you want to lower your mortgage rates without necessarily refinancing. It’s often not as difficult as you think, as long as you are willing to follow the right route. Contact the experts at Pacific Lending Group to learn more about the possibilities. Call 954-227-4727

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When Do You Know It’s Right to Refinance Your Home?

Refinancing a home mortgage loan is an important decision that can save you thousands of dollars in interest and reduce your monthly expenses. However, it is a significant undertaking and should only be done when the benefits outweigh the costs.

You’ll pay off your current mortgage and take a new one with refinancing. This is not something you should do lightly because it can lead to missed payments, damaging your credit score.
Let’s find when is the right time to refinance the mortgage on your home:

When You Can Obtain a Lower Interest Rate

The amount of time it will take you to recoup the refinancing costs is heavily dependent on the interest rate, so when you see your rates are trending downward or about to fall, that can indicate that it’s time to refinance.

However, the process of refinancing can be a lengthy one, so you should only consider it when rates are going to go down.

When You Need to Reduce Monthly Payments

Your home is the biggest asset you own. It should come as no surprise that refinancing to a loan with a lower rate and/or better terms will reduce your monthly payment.

When refinancing, you can often get a longer-term or a lower rate, or both. If you are interested in lowering your monthly payment, refinancing can benefit you.

When You Want a Better Mortgage

While refinancing can help you reduce your monthly payment, it may not result in a better deal. If the rates and fees associated with your loan are too high for you, refinancing could provide a better option.

When you take out a refinance loan, the total cost will be higher than your current loan. However, the amount you spend on interest and fees should be smaller, resulting in a lower monthly payment and/or a better loan term.

When You Need to Consolidate Debt

Refinancing can be a great way to consolidate debt. You may want to refinance the mortgage if you have other debts, such as credit card debt or an auto loan.

By consolidating all of your debt into one loan, you will save some money since you won’t be paying any fees for multiple accounts. Low-interest rates can be challenging to find, but refinancing can make it happen.

If you use your home to consolidate your debt, you need to be sure that the loan will help you pay off your other debts faster.

If You Want to Take Out or Receive Cash

While refinancing your home is generally not used to take out cash, it can be something that you use to provide some quick cash for a purchase.

If you go through some of your equity when refinancing, you can get the money you need to cover an emergency or another financial need.

Call Pacific Lending Group for the Right Advice!

If you are ready to refinance your property, you must make the right decision. Pacific Lending Group holds extensive experience in refinancing loans and is happy to help you with your decisions.

Call our specialists at 954-227-4727 or visit us online to learn more.