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California Refinance

Why are so many people in California refinancing their home loan? Our refinance page will answer some questions that may help you decide if refinancing is right for you. You will find that the California refinance process is the same as when you first obtained your original mortgage.

  • Double-digit home appreciation rates have allowed California homeowners to refinance and use the additional equity they've earned to get cash back to consolidate debt, pay off a second mortgage or spend on home upgrades, a second home or California investment property.
  • New loan programs. Over the past few years, there have been many new home loan programs rolled out in California that can drastically reduce your monthly home loan payments. Now is a great time to learn about your refinancing options.
  • PMI removal. People paying PMI have found that their home has appreciated enough that they can refinance their home loan and stop paying private mortgage insurance

Here are some questions you may have regarding your refinance

If I just refinanced a year or two ago, does it make sense to refinance again?

That depends on the mortgage amount, interest rates and how long you plan to stay in the house. With such great appreciation in California homes recently and the current home loan rates at historic lows, along with the many new home loan programs on the market, now is a great time to explore your options. Call me today for a free no obligation home loan analysis.

How much could I save on monthly payments?

You can figure to save about $30 a month for each half-percentage-point drop in interest rates on a $100,000 loan. The savings would be twice as much for a $200,000 loan - or if the percentage drop were 1% instead of 0.5%. You can use this as a gauge to estimate the savings for your loan. Currently, I have access to home loans with rates as low as 1% ARM and 5.3% APR. If you are currently paying 6% on a $300,000 home loan, you could potentially lower your monthly payments $800 or more!

Can I take cash out when I refinance?

Yes! Refinancing allows you to tap the equity in your home. Many use this cash for major purchases and projects like home improvement. In fact, capital home improvements (such as building an addition, adding a swimming pool, new yard, or a new roof), increase your home's value. You can even fund your child's education through refinancing!

Is it better to refinance with my current lender?

There is a general misconception that it is easier to work with your current mortgage company. In most cases your current mortgage company will require the same documentation as other companies. This is because most home loans are sold on the secondary market and have to be approved independently. So even if you have been very good at making payments to your existing lender, they will still have to do their verifications all over again.

Does it make sense to refinance a fixed-rate home loan in favor of an adjustable rate home loan?

Because interest rates on adjustable-rate mortgages fluctuate, it depends on how long you plan to stay in the house and how much you're willing to risk a rate increase. Often times the monthly savings on adjustable rate mortgages can be dramatic. Call me for a free home loan analysis.

Can I refinance with no out-of-pocket costs?

Yes, by rolling the cost of refinancing into your mortgage.

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