Reasons for Refinancing or Tapping Home Equity in San Diego
By Allison Beatty
San Diego’s housing market has seen record appreciation during the past 10 to 15 years. As such, there are many homeowners sitting on sizable nest eggs that can be tapped for a variety of uses. Here’s a look at why a home equity loan or a refinancing can make sense for your situation.
Home equity loans offer a convenient way for homeowners to access cash at a reasonable interest rate.
Because these loans are a second mortgage on a San Diego home, the rates are favorable. Homeowners who want to finance a new kitchen or roof, for example, can take out a home equity loan quickly and easily without having to tap into long-term investments or savings.
The interest paid on home equity financing also can be tax deductible. (See your financial advisor for details).
Refinancing your San Diego home is another popular way to access equity or save money. Homeowners who have an older mortgage with an interest rate that is higher than current rates, can benefit by refinancing.
Through a mortgage refinancing, homeowners can quickly recoup any refinancing costs in the form of savings on their monthly mortgage payment. When calculated over several years or as long as the homeowners plan to stay in the house the savings can be sizable.
Before deciding which route to take, homeowners should weigh all the options. They also should check interest rates carefully to determine if this is the right time to refinance or pull out equity from their San Diego home.
There are many advantages to mortgage refinancing and home equity loans. Homeowners should assess their individual goals, consider the financial details and shop around for the best deal.