I just read about the “cash-in refinancing ” or also known as “cash-in refi” is becoming popular per the Los Angeles Times article on July 11, 2010.
Homeowners can take advantage of locking in the low rates by “bringing some money to the table to take advantage of today’s record-low interest rate.” This concept has become quite popular within the past six to nine months as noted by “Frank Nothaft, chief economist at mortgage giant Freddie Mac, the government-charted enterprise that purchases mortgages from lenders.”
This concept differs from the past trend where refinance meant people were taking cash out of the home’s equity. In today’s economy, the homeowner owes so much on their mortgages; it is creating a better return on your money rather than leaving it in the bank.
The article notes in an example for a couple who wanted to refinance their second homes. Their loan officer states that “loans on vacation properties are difficult to find and expensive these days” so she recommended this couple do “a cash-out refi on their principal residence and use that money to do a cash-in refi on their second home”. The result was the homeowner had two loans “at absolute rock-bottom rates” and “they rebalanced their debt for an overall savings north of $1,200 a month.”
It is always good to stop paying PMI so try to avoid paying the private mortgage insurance. Keep your loan balance at 80% or less. The cash-in refi works for anyone, not just for homes in the Malibu,CA or Calabasas, CA.
If you are interested in leasing, purchasing a property or selling a property in Malibu, Pacific Palisades, Calabasas or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 her online contact form on her website.
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Judy Kunisaki – CA DRE license 00963582
