To say home prices in San Francisco are unpredictable would be an understatement. While there has been some positive news recently, Bay Area residents are continuing to tighten their budgets since the economic downturn. With uncertainty in the housing market, it is understandable that many are cautious on making any significant financial investments.

There is good news, though!

San Francisco home mortgage rates are at historic lows! These low rates have created an opportunity to lower your monthly payment and lock-in a lower mortgage rate by refinancing. Depending on your financial situation, this could save you thousands of dollars in interest payments. Here are a few tips to help you decide if refinancing now is the best choice for you.

Evaluate Your Home Mortgage Situation - Are there any big changes on the way such as children, a job change, or retirement? Do you plan on moving in the next three to five years? Are you planning on downsizing or upgrading your home in the next three to five years?

Credit Score - Check out your credit score and work to improve it before you refinance.  If your credit score has dropped since you got your mortgage it could have a negative effect on your interest rate, or may prevent you from refinancing at all.

Research San Francisco Home Mortgage Lenders - Ask friends and family how their experience was with their mortgage lender or bank. Was the lender fast and efficient? Were they trustworthy? Did they put the client first? Look at online reviews and shop around for the best rate. Also, consider how housing prices are fairing in your area.

Appraisal - Your current home value is a key part of the refinance process.  Homeowners looking to refinance are often worried that their home will appraise for a lower value than they expected.  It's important that you do your research so you aren't solely relying on the appraiser.  More appraisers are working in areas they aren't familiar with and that often means they are going to undervalue the property.

Work with a San Francisco Home Mortgage Professional

As a Quicken Loans home loan expert licensed in San Francisco, I have helped many clients buy a new home or save cash by refinancing into a lower monthly mortgage payment. Whether you want to refinance or buy a home, if you're ready to move forward get in touch with me at Quicken Loans today!