Refinancing Santa Fe Mortgage Company

There are many reasons to consider refinancing your home. 
For a long time, refinancing offered a lower interest rate that saved home-owners money each month. 
For others, refinancing offers cash at beneficial terms for home additions, school tuition, investments or personal emergencies. 

At Santa Fe Mortgage we do everything we can to keep your costs low and our personal service to you high, so that you get the maximum benefit from your refinance.  Our focus as an independent, licensed mortgage broker with access to a broad range of mortgage products like home financing, from different wholesale lenders coupled with our low-overhead saves our clients’ money.

You’ve probably heard the old rule-of-thumb, that it’s time to refinance when rates go down by 1% from your current mortgage rate.  Here’s how we look at it at Santa Fe Mortgage: we think it’s time to refinance when the cost of refinancing can be recouped in two years or less by the borrower’s lower monthly payment and there’s a high probability that you’ll be in your home for two years or longer.

Consider that a normal refinance costs $3,000 – $6,000.  For a borrower to justify the cost, we think you need to lower your monthly payment by $125 – $250 ($125 for a cost of $3000 over 24 months and $250 for a cost of $6000 over 24 months).  That’s the range of efficiency we’re looking to find for our clients.  An existing loan of $500,000 at 7.75% only needs to drop to 7% to save $255.55 each month.  A smaller loan of $300,000 at 7.75% only needs to drop to 7.125% to save $128.08 each month.

Many factors contribute to a final decision to refinance your mortgage.  Our point here, is that there’s no one-size fits all marker and Santa Fe Mortgage’s low-overhead and focused personal service give you the best chance for realizing a true benefit in refinancing.