Homeowners, is it Time to Refinance Your Mortgage?


It’s Kimberly with the Kimberly Calvo Team. I have a question for you and some current market information I’d love to share with you.

The question is, why haven’t you refinanced yet? I am sure I am not the first one to tell you that interest rates are at a national record low, and now would be the time that your home would appraise for top market value. 

Well, I can think of multiple logical reasons why you think you could not refinance. However, I highly encourage you to contact me and go over your potential new loan scenario to advise you if you can get it done. I say this because I have experienced it with many of my clients that thought they wouldn’t qualify because of misinformation. For example, “Oh, I don’t think I can refinance because I started a new position at a new job, and I am pretty sure that would be unacceptable to the bank.” Nope, as long as you have a 2-year working history, your number of past jobs doesn’t disqualify you for refinancing. All we need is a month worth of paystubs from your new job and verification of previous employment to get it done! A common misconception is gaps of work due to multiple reasons. For example, “Kimberly, I would love to refinance, but I got furloughed from my job due to COVID & the pandemic.” Well, friend, I’d like to inform you that banks understand entirely and as long as you are back working your regular hours we can prove with your most recent pay stubs, all will be ok! 

Another misconception is, “I don’t think my FICO score is good enough. I shouldn’t bother inquiring about it.” Well, yes, FICO scores are essential, but it is not the only factor to qualifying.

I have helped many people fix their FICO scores to where it needs to be (minimum is usually a 620) and just after a couple of months, boom they are ready to refinance! One more example that has been very common this year, in particular, is, “Well, I just bought my home last year, and I only put down 3.5% of the down payment. I don’t think much is going to come from refinancing.” Mr. & Ms. Homeowner, we are living in a time where the market prices have gone up substantially, and your home will likely appraise very similar to what the houses down the street are selling for, which is close to $60,000-$150,000 more of what you bought your home for last year. Meaning, you can get rid of your Mortgage Insurance and lower your interest rate. Double savings! These are my favorite loans. Seeing and hearing the reaction of people saving anywhere from $500-$900 a month for this specific reason makes me just as happy as the client!

As you can see, when I analyzed many of my clients’ situations, it turned out that they did indeed qualify and were able to get tremendous savings. On the other hand, I have plenty of examples of clients who were nervous about getting the process started because of their fears of not being able to get it done. That is why you must work with a loan officer who will go above and beyond for you. Me, I am that loan officer! I also don’t charge any upfront fees for inquiring. At the end of the day, if it’s not the right time for you, at least you attempted to do something better for yourself, and it didn’t cost you anything but your time, and believe me, I know how valuable everyone’s time is.

The bottom line here is, I want to help you take advantage of the best time in mortgage history to do many things with your homeownership. For example, if you wish to save money on your monthly mortgage, I will offer you a lower interest rate. Or, if you want to pay your mortgage faster, we have 20-year and 15-year terms as an option with a lower interest rate. Or you may have tons of home equity, and you want to cash out some money to use it however you’d like. I can do that for you! I have helped many clients lower their interest rates, take cash out, and end up paying a lower monthly payment than they had before refinancing.

Another critical reason to refinance is a deferred principal/payment amount or a second lien that you eventually need to address before the balloon payment is due. Refinance and consolidate your debt so that it can all be paid off at the same time. Imagine finally making your “last” mortgage payment, then you realize and remember you have a deferred payment due after your 30-year terms. Newsflash, you should not have to pay a mortgage payment for what feels like your whole lifetime. 

Take the opportunity. Call me now to discuss your next refinance options.




Appraisal – A professional estimate or opinion of the value of a piece of property (parcel of land) as of a specific date that’s supported by objective data.

Home Equity – is the difference between what you owe on your mortgage and what your home is currently worth.

Mortgage Insurance: Insurance offered by private companies to insure lenders against default on loan by the borrower, when there is a loss of value in the repossessed collateral value; a part of your total monthly payment when you put down less than 20% for your down payment.

Cash-Out Refinance – A mortgage refinancing option in which an old mortgage is replaced for a new one with a larger amount than owed on the previously existing loan, helping borrowers use their home mortgage to get some cash out.

Deferred Principal Balance – Any amount of principal due to the Lenders under the Loan Agreement and the Notes, the payment of which is deferred pursuant to Section 2.10(b) of the Loan Agreement.

Balloon Payment – A final lump sum payment at the end of a loan term to pay off the entire remaining balance of principal and interest not covered by payments during the loan terms.

Second Lien – Second-lien debt is borrowing that occurs after a first lien is already in place. It subsequently refers to the ranking of the debt in the event of a bankruptcy and liquidation as coming after a first-lien debt is fully repaid.

Kimberly Ann Calvo

Loan Originator

Mortgage Loan Originator NMLS 1850402 | CA STATE ID 02089992