Refinancing a Mortgage in Sacramento

February 7, 2025
Aaron Clowes
Refinancing

Refinancing a Mortgage in Sacramento: Everything You Need to Know

Introduction to Refinancing a Mortgage

Thinking about refinancing your mortgage in Sacramento? Whether you want a lower monthly payment, better interest rates, or cashing out home equity, refinancing can be a smart financial move. But let’s be honest—mortgages can be confusing. That’s where a local mortgage broker comes in handy.

At New Way Mortgage, we specialize in helping Sacramento homeowners get the best refinance deals tailored to their needs. Unlike big banks, we take a personal approach—because your home isn’t just another loan file to us.

Ready to get started? Click HERE to get preapproved today!

What is Mortgage Refinancing?

Refinancing your mortgage means replacing your current loan with a new one, usually with better terms. Homeowners refinance to save money, get cash, or secure a more stable loan. But working with the right lender makes all the difference.

This is why many Sacramento homeowners prefer a local mortgage broker like New Way Mortgage. We have access to multiple lenders, meaning we can find you the best rate instead of pushing one bank’s limited options.

Why Homeowners in Sacramento Refinance Their Mortgage

Sacramento homeowners choose to refinance for many reasons:

Lower Interest Rates (APR): If rates have dropped since you bought your home, refinancing could save you thousands.
Reduce Monthly Payments: A lower rate or longer loan term can free up cash in your budget.
Switch Loan Types: Moving from an adjustable-rate to a fixed-rate mortgage can provide stability.
Cash-Out Refinance: Need money for home improvements or debt consolidation? Tap into your home’s equity.
Eliminate PMI: If you originally put down less than 20%, refinancing could remove private mortgage insurance (PMI).

When is the Right Time to Refinance?

Refinancing isn’t always the right move, but if any of these apply to you, it might be time:

Interest rates are lower than when you purchased your home.
Your credit score has improved, qualifying you for better rates.
You want to shorten or extend your loan term.
Your home has gained significant equity.
You want to switch to a better lender (Hint: New Way Mortgage has got you covered! 😉)

Different Types of Mortgage Refinancing Options

Not all refinancing options are created equal. Here’s what you need to know:

Rate & Term Refinance: Swap out your current loan for a better rate or term.
Cash-Out Refinance: Borrow against your home equity and get cash in hand.
FHA & VA Streamline Refinance: Easier refinance options for government-backed loans.
USDA Refinance Programs: For homeowners with USDA loans looking for better terms.

Not sure which option is best for you? Let’s talk! Our mortgage experts will walk you through your choices.

Why Work with a Local Mortgage Broker in Sacramento?

Refinancing can feel overwhelming, especially when you’re comparing rates and loan options. That’s why working with a local mortgage broker is the best move.

Here’s why Sacramento homeowners prefer working with New Way Mortgage instead of a big bank:

✅ More Loan Options – We work with multiple lenders to find the best fit for YOU.
✅ Faster Approvals – Local brokers can speed up the process and cut through red tape.
✅ Personalized Service – No 1-800 numbers here! You get real people who care about your success.
✅ Knowledge of the Sacramento Market – We know the local trends and how they impact refinancing.

Want to experience the difference? Get preapproved HERE or give us a call at 916-465-6639.

Steps to Refinancing Your Mortgage in Sacramento

Set a Goal – Know why you’re refinancing (lower payment, cash-out, etc.).
Check Your Credit Score – Better scores = better interest rates.
Compare Lenders – A local mortgage broker will help you find the best deal.
Get Preapproved – A lender will assess your eligibility.
Submit Your Application – Gather documents like tax returns, pay stubs, and bank statements.
Close on Your Loan – Once approved, sign the paperwork and enjoy your new mortgage!

Costs Associated with Refinancing a Mortgage

Refinancing isn’t free. Here’s what to expect:

Closing Costs: Depending on the Lender they’re typically 2-5% of the loan amount.
Appraisal Fees: Required to assess your home’s value but this can be waived in some situations.
Loan Origination Fees: Charged by lenders to process your new loan.

But here’s the good news: New Way Mortgage can help you find lenders that offer low-cost or no-cost refinance options. Want to see what you qualify for? Apply now!

Finding the Right Mortgage Lender in Sacramento

Not all lenders are created equal! Here’s what to look for:

Competitive interest rates
Low fees
Fast and easy process
A lender who understands the Sacramento market

This is why working with a local mortgage broker like New Way Mortgage is your best bet. We shop multiple lenders for you to find the best rates and terms.

Get Started with Your Mortgage Refinance Today!

Refinancing your mortgage in Sacramento can be a game-changer, but only if you do it the right way. Working with a local mortgage broker like New Way Mortgage ensures you get the best deal, faster approvals, and expert guidance every step of the way.

📞 Call or text us at 916-465-6639
📧 Email us at hello@newwaymortgage.com
📅 Schedule an appointment HERE

And don’t forget to check out our YouTube channel for the latest mortgage tips and advice!

FAQs About Refinancing a Mortgage in Sacramento

1. How soon can I refinance after buying a home?

Most lenders require you to wait at least 6 months after your initial mortgage. But there are some workarounds.

2. Can I refinance with bad credit?

Yes! But expect higher interest rates or additional requirements. A mortgage broker can help you find the best options.

3. How does a cash-out refinance work?

You replace your current loan with a larger one and pocket the difference in cash.

4. What documents do I need to refinance?

Pay stubs, tax returns, bank statements, and your current mortgage details.

5. Will refinancing affect my property taxes?

No, a refinance will not change your property taxes.