Archive for the 'Financial Trends' Category
Is Your Home Worth Less Than You Paid For It? Great Time To Lower Your Property Tax In San Diego.
July 24th, 2008 Categories: Financial Trends, Real Estate News
It might be a good time to get your property tax lowered. Depending on when you purchased your property you might be able to get a lower assessment of value. An assessment is used by local government to assess the value of your property for tax purposes. Example: If you paid $500,000.00 for your home and there are similar homes selling for $400,000.00 then it might be a good time to have your property re-assessed at the lower value. This service is absolutely free and could save you thousands of dollars in property taxes in San Diego County. I have recently had success in lowering my clients property tax based on the recent home sale comps that pertain to their home.
Application For Changed Assessment
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When does it make sense to Refinance your mortgage? A simple way to determine how much money San Diegans can potentially save on their home loan.
January 31st, 2008 Categories: Financial Trends, Sell San Diego
I have pondered this very question numerous times and after finding this article on bankrate it all make s a little more sense.
Q: How do I decide whether it makes sense to refinance?
Q: Is it true that it is not really worth refinancing a 30-year mortgage unless it is to go down a full point of interest?
Q: At what point is it worth it to apply to refinance a mortgage? We have a 30-year fixed rate of 5.75 percent. We have good credit and would love to reduce our monthly payment. But will the fees and hassle outweigh the cost benefit?
Q: I am in the market looking to move into a larger house. I haven’t seen anything I like at this point, but mortgage rates are low enough that I could refi and save some money. If I refinance now, and then want to purchase a home down the road, am I hurting my chances for getting that mortgage?
Holden Lewis: Give a manicure to those old rules of thumb that say you shouldn’t refinance unless the rate has dropped by a certain percentage. To figure out whether it’s in your best interest to refinance, you need to calculate your break-even point.
The break-even point is the time it takes to make up in monthly savings what you paid in fees. You calculate it by dividing the mortgage fees by the monthly savings. For example, let’s say you would save $100 a month by refinancing, and the closing costs would be $3,000. Your break-even point is 30 months from now: the $3,000 in fees divided by the $100 a month in savings.
In this case, if you expect to continue living in the house for more than two-and-a-half years, you’ll save money in the long run by refinancing. If you plan to sell the house before then, it’s probably best to stick with the mortgage you have.
How do you figure your monthly savings? You’ll have to get an estimate of the rate for which you’ll qualify. A mortgage broker or loan officer can tell you that. Ask the loan officer, or consult a mortgage calculator, to determine what your principal and interest would be with the new loan. Look at your payment coupon to find out what your current monthly principal and interest are. Now you can figure out how much you would save every month.
It is safe to say depending on the cost of your refinance it looks like an opportune time to consider getting a lower interest rate on your loan. There are many lenders out there so be sure to choose wisely.
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