Summit Lending Mortgage Refinance – When Is The Right Time?

Summit Lending Refinance - Huntington Beach Mortgage Lender

As a Huntington Beach Mortgage Lender, there are many times when I’m approached by clients who are curious about refinancing their current mortgage. While there are many reasons why someone may want to refinance, many are unsure of the process or why it may or may not be a good option for them.

From the time you acquired your first mortgage, there are many things that have likely changed in your life. Whether it be a new job or something else, there are a variety of reasons why refinancing a mortgage can be beneficial to someone. One of the great things about refinances is that it provides you with the flexibility to restructure your mortgage at a certain point, whatever your reasons may be.

To help you gain a better understanding of when and why refinancing may be good for you, here is a list of helpful reasons:

1)      Current interest rates are lower than what you are currently paying on your mortgage

Perhaps the most common reason people opt to refinance is because current interest rates are lower than what they were when the original mortgage was signed. Interest rates are constantly fluctuating, but when they’ve been lower than your current interest rate for a consistent period, refinancing your mortgage in order to get the new rate can be beneficial.

Doing this can help lower the amount of money you pay monthly as well as reduce the total amount of interest you will pay over the term of your mortgage.

2)      Changing the type of rate associated with your mortgage

There are two main rates that people have associated with their mortgage: an adjustable rate and a fixed rate. An adjustable rate, also called a variable rate, is when the interest rate on your mortgage changes based on the benchmark rate at the current time. A fixed rate is a rate that is locked in at a certain amount for the duration of your mortgage. It will not change whether the benchmark rate rises or falls.

Both rates can be beneficial but it depends on the person. For example, a fixed rate would be best suited for someone who likes to know exactly how much they must pay each month and can budget accordingly. In contrast, a variable rate is best suited for those who believe the rate will drop over the duration of the mortgage.

3)      Adjusting the length of your current mortgage

Changing the duration of your mortgage is another reason to refinance. Simply put, refinancing your mortgage is almost like getting a brand new one. This means that you can get a new rate and a new term as well. However, adjusting the length of your mortgage could affect whether you will be paying higher or lower monthly amounts depending on if you’re extending or shortening the term.

For example, if you wish to shorten the term of your mortgage, your monthly payments will increase but the total amount paid in interest will decrease. On the other hand, if you extend your term, your monthly payments will drop but will result in more interest being paid by the end of it.


Whether you’re interested in buying a new home, renewing a mortgage or refinance mortgage California, a Huntington Beach mortgage lender such as Eric Gausepohl can help ensure you get the right deal based on your unique scenario.

For more information on how Eric can help you refinance your mortgage, contact him today!

Eric Gausepohl and Matt Gausepohl
NMLS# 371291 | NMLS# 328382

Huntington Beach Location
2130 Main Street Suite 110
Huntington Beach, California 92648

Temecula Location
28581 Old Town Front Street, Ste 108
Temecula, CA 92590

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