downtown San Diego real estate   mls listing  

San Diego downtown real estate broker

Bob Schwartz, CRS, GRI 

Certified Residential Specialist



San Diego, California 92101

Telephone - Cell:
(619) 300-8819

(619) 229-0048

Copyright © 2006 by
All rights reserved.

Promotions Unlimited

search engine optimization

You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.


Considering Re-Financing?

By Bob Schwartz, CRS, GRI ©2005 All rights reserved.

Homeowners who are considering re-financing their home may have an abundance of options available to them. However, these same homeowners may find themselves feeling overwhelmed by this wealth of choices. This process doesn’t have to be so frustrating though. Homeowners can greatly aid themselves in the process by taking a few simple steps. First the homeowner should decide on his refinancing goals. Next the homeowner should confer with with a re-financing expert and finally the homeowner should understand that re-financing is not always the best solution.

Establish Your Goals for Re-Financing

The opening step in any re-financing process should be for the homeowner to establish his goals and also decide why he is thinking about re-financing. There are many different answers to this question and none of them are necessarily right or wrong. The most important thing is that the homeowner is making a selection that will drive them towards their financial goals. Even though there are no right or wrong answers as to why re-financing is the right choice there are, however, certain reasons for re-financing which are very common. These reasons include:

* Reducing monthly mortgage payments

* Consolidating current debts

* Reducing the amount of interest paid over the course of the loan

* Repaying the loan quicker

* Gaining equity quicker

You may find their mortgage re-financing plan fits into one of the above goals or there may be a very different reason for wanting to re-finance. The reason for wanting to re-finance is not as important as determining this reason. This is because a homeowner, or even a financial advisor, will have a difficult time determining the best re-financing option for a homeowner if the goals of the homeowner are not known.

Talk with a Re-Financing Expert

Once a homeowner has figured out why they want to re-finance, the homeowner should think about meeting with a re-financing expert to figure out the best refinancing strategy. This will likely be a strategy which is financially sound but is also still geared to meeting the needs of the homeowner.

Homeowners who feel as though they are particularly well learned in the area of re-financing might consider ignoring the option of consulting with a re-financing expert. However, this is not recommended because even the most learned homeowner may not be aware of the newest re-financing options being offered by lenders.

While not comprehending all the options may not seem like a big deal, it can have a large impact. Homeowners may not even be aware of mistakes they are making until they hear of friends who re-financed under similar conditions and received more beneficial terms. Hearing these scenarios can be quite discouraging for some homeowners especially if they could have saved considerably more while re-financing.

Think About Not Re-Financing as a Viable Option

Homeowners who are considering re-financing may realize the importance of evaluating a number of different re-financing options to determine which option is best but these same homeowners may not realize they should also carefully consider not re-financing as an option. This is often referred to as the “do nothing” option because it refers to the conditions which will exist if the homeowner does not make a change in their mortgage situation.

For every re-financing option looked at, the homeowner should determine the estimated monthly payment, amount of interest paid during the course of the loan, when exactly the loan will be fully repaid, and the amount of time the homeowner will have to remain in the home to recoup closing costs associated with re-financing. Homeowners should also determine these values for their current mortgage as it can be very helpful for comparison purposes. Homeowners can compare these results and often the best choice is very clear from these numeric calculations. However, if the analysis does not yield an obvious answer, the homeowner may have to evaluate secondary characteristics to make the best possible decision.



Bob Schwartz, is a Certified Residential Specialist, CA licensed real estate broker with Bob has over 27 years of residential real estate experience, authored a number of published articles and served as an expert witness for San Diego lawyers. You can contact Bob via e-mail at or visit his highly popular San Diego real estate website at:
This work is protected under copyright and may not be published in other works without express written permission from Promotions Unlimited or the following procedures are implemented: Please feel free to publish this article (as long as no changes are made (all hyper-links to remain and not be modified in any way) and the author's name and site URL's are retained) in your ezine, newsletter, offline publication or website. A copy would be appreciated at Click here to email Bob


Back to San Diego downtown real estate article index

San Diego downtown real estate broker