California Home Refinancing

Refinancing your home in California may be easier than you think. Rates are at a current low; homebuyers can now enjoy the long term savings of refinancing as well as more cash in their pockets and lower monthly payments on their homes.

Interest rates are currently very low. If you bought your home in the 1990’s, your interest rates could be as much as 3 percentage points higher than the current market interest rates. In addition, if you had poor credit when you bought your home, you could have an even higher interest rate. If this is the case, refinancing your current mortgage could lower your monthly mortgage payment significantly.

A lower mortgage payment could mean a lot of relief for you if you are like most homeowners and are strapped for money every month. A cash-out refinance lets you use your home’s equity to borrow additional money. This extra money can be used for home improvements (to build more home equity), to pay off other bills or any other expenses you may have.

Refinancing your mortgage is especially beneficial if you currently have an adjustable rate mortgage. Adjustable rate mortgages can change and rise over time, but if you refinance your mortgage, you can lock into a permanent lower interest rate.

If your credit is good, you will have no problem refinancing your mortgage. If you have poor credit, some lenders may not approve you for prime rates. In this case, carefully consider whether refinancing is the best option. Remember, the goal is to ultimately get a better mortgage rate. If a lender is unwilling to offer a significant rate reduction, refinancing may be a waste of time and money.