CA Mortgage & Refinance News - California


CA Mortgage - Refinancing California

CA Mortgage Refinance - Why Refinance your California Mortgage?

Want to refinance an existing high interest CA mortgage with the lowest mortgage rates available? Interested in refinancing with cash out in order to make home improvements? Need to refinance to consolidate existing loans? We can help!

When you refinance, you pay off your existing mortgage with a new one. Most Lenders require that you have at least ten percent equity in your home prior to refinancing an existing mortgage. Usually, if you are planning to maintain ownership of your property it may make sense to refinance.

Reasons to refinance your mortgage:

1. Interest rates may be lower now than when you originally got your mortgage. If interest rates are 1 percentage point below your current interest rate you should look into refinancing.

2. Maybe when you originally got your mortgage you took an adjustable rate mortgage, and now with mortgage interest rates lower it's time to switch it to a fixed rate mortgage. Fixed rate mortgages can reduce your monthly payments if the interest rates have dropped sufficiently.

3. Perhaps you want to make some home improvements and need cash out to finance the changes.

4. Maybe you want to change the term of your current 30 year mortgage to a 15 year mortgage at today's low mortgage interest rates.

What is a cash out mortgage refinance?

A cash out mortgage refinance is when you get a new mortgage for an amount higher than the current debt owed on your present mortgage. With a cash out refinancing you will receive a check after closing for the amount you have financed above the amount required to payoff your present mortgage.

Whether to refinance or not depends on a few factors. Today, the closing costs to refinance your mortgage will be about the same as those of your original mortgage. You need to have an idea how long you plan to stay in your home. If you don't plan to own your property long enough to recover the new closing costs then it won't make good financial sense to refinance.

If you refinance your current mortgage and lower your interest rate by 1% and the refinancing closing costs are about 1% of the mortgage amount you will recover your closing costs and be ahead financially in about 18 months!


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