Best Refinance mortgage In Southern California

Refinancing a mortgage can be a very smart financial move in order to save money as it gives the homeowner an opportunity to obtain lower interest rate and shorten the term of their mortgage. When you refinance a mortgage, you pay off your existing mortgage and replace it with a new one. The terms and interest rate after refinancing the mortgage might be contrasting as compared to your previous mortgage loan plan. Also refinance a mortgage in Southern California reduces your mortgage payment and help you build your equity more promptly. When you have significant equity or owned the land for a long time, the process of refinancing mortgage becomes easier. 

Eligibility for refinance mortgage:

The process one person goes through when they want to purchase a loan is similar to determining their eligibility for refinance mortgage. The mortgage lender will examine some things to determine your eligibility including your credit score, current income, value of home, the loan amount and any additional debts. The LTI (Loan to Value) Ratio also plays an important role in determining your eligibility, which is used to find out how much you still owe on the mortgage.

Types of mortgage refinance:

As there are so many refinancing options available, you need to have knowledge about all the different options:
  • Conventional Refinance Mortgage:  The mortgagee requires a certain amount of equity in the conventional refinance of a mortgage, although these kinds of loans usually have lower refinance mortgage rates as compared to others. They also get processed faster as there is less paperwork required for them. If you want to avoid Private mortgage insurance than you only need 20 percent equity. 
  • Home Affordable Refinance Program (HARP): It is a government sponsored program that helps you if you owe more that your home is worth, or if your home is declined in value due to home crises. It is designed to help homeowners who are currently on their mortgage payments, to take advantage of lower interest rates and lower monthly payments. 
  • FHA Streamline Refinance: It is one of the fastest ways to refinance into another FHA mortgage in place of existing FHA mortgage as it requires less paperwork, there is no income verification procedure. Although there is a credit check and your mortgage must be in good standing. You can reduce current mortgage rate on your home loan and also the payment also get reduced.
Why Refinancing Mortgage Might Be Beneficial For You? 

Interest Rates 

One of the best reasons to refinance mortgage is to lower the interest rate on your current mortgage plan. If your interest rate are higher as compared to the current interest rates than refinancing the mortgage can save a substantially amount of money over the life of your loan . It not only helps you save money but it also increase the rate at which you build equity, it also reduces the size of your monthly payment of the mortgage and pay off your loan balance. To know about the lowest interest rate a person should always keep an eye on the current interest of the market.

Loan Term

When a homeowner refinances a mortgage, they have the opportunity to restructure their term of the mortgage. A refinance mortgage loan offers the chance to restructure your terms. A short term is more ideal as you can pay off your mortgage faster and your equity also builds promptly.

Adjustable Rate and Fixed Rate Mortgages

By refinancing a mortgage in southern california you can easily convert from Adjustable Rate Mortgages to Fixed Rate Mortgages and vice versa. In a falling interest rate environment, converting from a fixed Rate loan to Adjustable rate mortgage can be a good financial strategy as it has a lower monthly payment.
Eric Gausepohl and Matt Gausepohl
NMLS# 371291 | NMLS# 328382

Huntington Beach Location
2130 Main Street Suite 110
Huntington Beach, California 92648

Temecula Location
28581 Old Town Front Street, Ste 108
Temecula, CA 92590

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