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Dave & Pat Zumbrun

(805) 340-9338

Pat Zumbrun
Broker/Owner-SFR
Email Pat at patz4re@aol.com  
Cell: (805) 340-9338
BRE #01229401


Dave Zumbrun
Broker/Owner-SFR
Email Dave  at zman4re@aol.com
Cell: (805) 340-9339
BRE #01227683

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SOLD!

440 Frances St. - Ventura, CA - 3 Bed/2 Bath Home for Sale

SOLD! $775,000
440 Frances St. – Ventura, CA
3 Bed/2 Bath

SOLD!

Under Contract - 1205 Church St
SOLD! $2,415,000
2305 Church St.
Ventura, CA
Gorgeous View Home on 1.86 acres

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Refinancing Your Home: Calculating Your Costs

Interest rates hit historic lows in 2020. This helped spur on Ventura home buyers to purchase new properties even during these turbulent times. It also brought lenders out of the woodwork, enticing people to refinance their current home loans to take advantage of the lower rates. But before you sign on the dotted line, you need to know the cost of refinancing your Ventura home. Why? Because it might not be worth it.

If you are contemplating refinancing your Ventura home to a lower interest rate, you might want to consider the costs first.

Home Refinancing

How Much Will a Refi Cost?

Search Ventura County homes for saleWhile you forego agent fees on a home-refinance, it still comes with other fees that quickly add up. According to Lending Tree, a home refinance costs anywhere from 2% to 6% of your loan amount. For a $500,000 mortgage, that ranges anywhere from $10,000 to $30,000. That is nothing to sneeze at.

How Much Will a Refi Save?

That depends on the size of the loan. Let’s say you bought your Ventura home four years ago for $500,000. You pay 3.5% on your 30-year fixed-rate loan. With your excellent credit score, you qualify for the 2.5% that Wells Fargo currently reports. Your payment decreases from $2245 per month to $1816 per month when you refinance for another 30-year term (a savings of $430 per month). With closing costs estimated at $13,800 (based on 3% of the loan), you will not recoup the cost of refinancing for 33 months.

If you decide that you want to keep to the original 30-year timeline and just refinance for 26 years, you save $237 per month. That draws your recuperation period out even longer. But you do not add any time to the life of your loan.

Is it Worth it?

That depends on how long you plan on living in your Ventura home. If you want to live in your current home for another five years, the cost may be worth it. However, if you think you might put your property on the market in the next year or two, a refi might not be your best choice. Discuss all options (pros and cons) with your lender before determining whether or not a refinance is right for you.

Dave & Pat Zumbrun, your Ventura County real estate specialists

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