California Refinance - What You Need To Know

Getting your dream home is one and paying your debts is another. A refinance will require your careful planning and budgeting if you want to succeed with your new loan. Do you really want to go through with it?

What's The Deal?

The deal is paying a lower monthly payment without having to increase your interest rates. As a rule, a good 2% off from your usual loan interest will make California refinance a better option. California is still the best place to be and lower interest rates may attract you get it. Many lenders with attractive interest rates will be vying for your business. Be vigilant, though, if you wish to have a successful refinance program.

What You Should Know

Any refinancing means a longer new loan. If you have a 30-year fixed rate mortgage with only 20 years remaining but you want more cash flow monthly and you think you'll be saving more by refinancing into a new 30-year agreement, you will erase 10 years of payments. Given this scenario, you have to have a very good reason to get a California refinance, like lowering your monthly bills, paying off big debts, sending your child to college, and other big expenses.
Also your loan can be tax deductible? This will help you lower your expenses further. However, this varies from state to state, so it's best to check where yours stand.

What Happens When You Apply For a Loan?

Of course, you'd like to know what happens after you fill-out the application form for a California refinance. The loan consultant has your application pre-approved and before your application file reaches the closing, it goes through a series of steps. Be prepared with a copy of the title of the subject property and your income tax payments. The loan consultant will review these, including other documents. Afterwards, you will receive the loan disclosures which you will need to sign and return to the loan consultant.
Property appraisal and the review of documents by the processing department and the assigned underwriter will follow. Upon the final approval made by the underwriter, the closing date is finally scheduled. The final documents will be sent to the title company, notary public, or attorney who will close the loan. At this point, be ready with your state issued-identification prior to signing the loan document.
Copies of all the documents signed during the closing will be provided. This will be followed by the three-day rescission period - enough time for you to change your mind. If you don't cancel, a new title will be recorded and you are provided with the funds.

Double Check Rates Before Getting a Loan

Take the time to review the going rates and compare them with your existing loan. Lowered rates does not mean you'll be paying lower monthly payments with a California refinance or a re-mortgage. You might end up paying higher monthly bills. If the monthly payment won't be lowered, a refinance is worthless. So do your homework.