If you own your home in Thousand Oaks and are making big monthly payments because of high interest rates, talk to Capstone Direct right away about refinancing.

Refinancing is where you obtain a new loan on your home with better conditions. It’s perfectly legal and quite common, and current conditions in the housing market are very favorable to homeowners.

Here’s just a few ways refinancing can make your life better…

1. Lower Payments

Interest rates on refinance loans are hanging around historically low levels. Fifteen-year fixed-rate loans are hovering at 3 percent or lower. You could save up to $20,000 for every $100,000 on a 30-year fixed-rate loan. This won’t last forever, and at the risk of pushing a “fear of missing out” sales pitch, you really should act now. You can lower your monthly payments for years to come.

2. Pay Off Your Debt Sooner

With the right refinance loan, you could not only lower your monthly payments, you could lower the number of months you have to make those payments. You’ll save thousands in interest if you shorten the length of your loan. That means you’ll pay less than you initially signed up for, and you’ll be mortgage debt-free before you initially planned.

3. Greater Opportunity

Another school of thought beyond simply reducing your debt more quickly is that of reinvestment. Some advisors would recommend refinancing into another 30-year fixed rate loan to get much lower monthly payments, and using the savings to invest in other endeavors that will generate higher returns. (Another plus to this route: a longer mortgage term nets you a bigger annual tax deduction.)

4. Better Partnerships

With loans so low these days, we have more negotiating power to get our customers better deals. We can take care of the whole process almost entirely in-house to not only speed up the process, but also provide a wider variety of options to make sure every customer gets the absolute best rates they can.

5. Get Out of an Adjustable Rate and Into a Fixed Rate

Adjustable rate loans definitely have their advantages, especially for new buyers, but one thing nobody likes is unpredictable rate increases. With a fixed rate, you’ll know exactly what you’re paying every single month. With rates so low right now for fixed-rate loans, adjustable rate loans aren’t usually worth the unpredictability.

6. Consolidate Your Debt

Refinancing enables you to roll a second mortgage or home equity loan into one home mortgage. This in turn enables homeowners to save money by paying one low rate. You could save thousands on interest.

7. Cash In Hand

If you have equity in your home, one option is a cash-out refinance. This allows homeowners to pull out capital if it’s necessary. Typically, it’s not advisable to use this for anything other than major necessary expenses (like sending a kid to college) or home renovations (which will generate greater home value). Prior to the financial crisis of last decade, lots of people drained equity to pay for vacations and luxury purposes, which was part of the overall problem.

Avoid frivolously refinancing. Talk to our refinance experts here in Thousand Oaks and make your money work smartly.