Things You Should Know About Refinancing Your Home

Updated: Apr 13


Your home may be one of your biggest investments and refinancing it could be a way to help you save money. With loan rates at a near-record low, you may be asking yourself if now is a good time. The answer is it depends. There are a few things that you should know and consider about refinancing to help you decide if refinancing is right for you:


There are different types of home refinancing.

First, it is important to note that all home refinances require home equity, which means that your home is worth more than the balance of your existing loan. At CalCom, we offer refinances for 80% Loan-To-Value (LTV). This means that if your home is valued at $700,000, you may be eligible to refinance if the total amount of your mortgage is $560,000 or less.

Rate and term refinance

When available rates are less than your current rate, refinancing may be a way to save money by lowering your monthly payments or changing the term of your loan to pay it off quicker. Refinancing can also allow you to change your loan program (e.g., a 5-year adjustable-rate mortgage to a 30-year fixed) for long-term stability.


Cash-out refinance

A cash-out refinance means that you’re using your home's equity to increase your loan amount so that cash can be taken out to use for debt consolidation, home improvements, and more. The benefit of this is that your refinanced interest rate will likely be less than the interest rate of a personal loan. It's also important to realize that a larger loan amount will decrease your LTV, increase your total mortgage amount, and prolong loan amortization.


Refinancing is also available for car loans.

If you qualify for a lower loan rate than the rate of your current vehicle loan, then it may also be an excellent time to refinance your car. Like refinancing your home, an auto refi can save you money by lowering your monthly payments or term of your loan.

Before initiating a refinance, you should be clear about your financial goals and what you aim to accomplish.

CalCom offers competitive rates for both home and auto refinancing. You can call us at 855.9CALCOM (855.922.5266) to learn about the refinance options available to you.