Zach Larichiuta – Lucy Lending Team, Charleston Mortgage Broker
Being a trusted Charleston Mortgage Broker, Charleston CMPS and Certified Mortgage Planning Specialist for many years, I have realized one of the most important things to understand as a homeowner is what refinancing is the different options and when the right time for you to engage this process is.
What is Refinancing?
Refinancing is the process of obtaining a new mortgage in an effort to reduce your monthly payments, lower your interest rate, change loan programs, shorten your amortization, take cash out of the equity in your home or to change mortgage companies.
When Should I Refinance?
This aspect of timing is one of most importance. Zach Larichiuta and the Lucy Lending Team are constantly keeping an eye on the market, trends with property values in the metro Charleston area, interest rates and where each and every one of our valued clients stands in relation to these factors. Our communication does not stop after closing. We always are available to our clients and checking in on to see if we can be of assistance for answering mortgage questions, seeing if the persons personal situation has adjusted or if they would benefit from a rate and term refinance or potentially a cash out refinance, based on their personal needs. This is what sets Zach apart from other local lenders, he takes the time to assess each individual’s scenario, their equity in the property and their goal with the property, as that can change and needs to be weighed in the transaction.
Common Mistakes or Misunderstandings.
I would say the two most common mistakes or confusing aspects within a refinance transaction is becoming interest rate obsessed and not reviewing a cash out transaction. Often time’s clients are turned off and dissuaded by refinancing into a higher interest rate than they currently have with their mortgage. One example of this being a good avenue is refinancing from a FHA loan to a Conventional loan. FHA interest rates are commonly lower than Conventional rates. If the client has enough equity to appraise with their property value giving them 20% equity in the property, refinancing from a FHA loan program to a Conventional loan program, even with a higher interest rate would allow the client to drop the current MIP, Monthly Insurance Premium and have lower monthly payment with their new loan. The other most commonly ignored or non-reviewed loan scenario not weighed when considering a refinance with your home is a cash out refinance. If the borrower has enough equity in their property to take cash out of the home, they could potentially use that money for upgrades in the property (adding significant value and equity) or paying down other debts, such as credit card debt or student loans that are at a much higher interest rate than their mortgage interest rate and giving them significant savings on their monthly debt payments. Click here to check out our mortgage calculator. Call Zach Larichiuta and the Lucy Team today, to set up a face to face meeting with Zach or speak on the phone to see if you could potentially benefit from a refinance. Click here to check out the types of refinances we offer.