Getting The Best Rates For Your California Refinance Mortgage
Considering a California Refinance mortgage? Don’t let the mortgage industry press of doom and gloom scare you… the truth is, this may be the best time to refinance your existing home mortgage. But before you talk to a lender, make sure you understand what you are considering doing.
What is a California Refinance mortgage?
There are two major reasons why homeowners consider refinancing a home mortgage:
1. Cash – For years, property values in the Lake Tahoe area have steadily increased in value. This increase in value created a growing equity value for the property. In addition, you increased your equity by making your mortgage payment. Most of the mortgage payment that you make each month is used to pay the interest on the loan balance for the previous month. But some of that monthly payment is used to reduce the principle of the loan. This means that, over time, lowering the principal balance and increasing the property value together gave you an increasing level of equity in your property. Many homeowners wish to re-place their older, low balance mortgage with a newer, high balance mortgage. Why? Because as a result, the equity difference is given to the borrower at closing, giving the homeowner, in many cases, a sizable amount of ready cash.
2. Lower Cost – Some homeowners with mortgage interest rates of 8% or 9% or 10% or even higher, realize that at today’s very low interest rates, they can replace their older, high-interest loan and save substantial amounts of interest over the years.
The California Refinance Mortgage Process
The California Refi process usually requires five major steps:
1. Find a mortgage lender – Finding the right mortgage lender for your situation is critical to arranging a successful, cost effective refinance transaction. RainTree Financial is widely respected mortgage lender in the lake Tahoe area and their website can provide you with a number of helpful articles and studies about the different types on mortgage lenders that are available and the benefits of each.
2. Loan Application – Your selected lender will meet with you and assist you in completing a series of forms that comprise your loan application. This application usually must be accompanied by an application or origination fee.
3. Borrower Approval – The lender will then evaluate your income, debt level, payment history, and other factors in order to provide you with Borrower loan approval.
4. Property Approval – The lender will also evaluate the property to insure that is has sufficient value to protect the lender in the unlikely event that you default on the loan. These evaluation steps usually include an appraisal, a title search, and sometimes a survey, and property inspection.
5. Closing – Once both the borrower and the property are “approved”, the final loan documents are prepared and submitted to a “closer” who finalizes the paperwork and completes the refinancing transaction.
Like any other mortgage loan transaction., a California refinance mortgage can be a very savvy financial move… or a very painful mistake… the difference is often based on the mortgage lender that you select.
And the best mortgage specialist in the Lake Tahoe area is RainTree Financial… just fill out the “Quick Quote” form and you’ll see what we mean…
Getting The Best Rates For Your California Refinance Mortgage
Considering a California Refinance mortgage? Don’t let the mortgage industry press of doom and gloom scare you… the truth is, this may be the best time to refinance your existing home mortgage. But before you talk to a lender, make sure you understand what you are considering doing.
What is a California Refinance mortgage?
There are two major reasons why homeowners consider refinancing a home mortgage:
1. Cash – For years, property values in the Lake Tahoe area have steadily increased in value. This increase in value created a growing equity value for the property. In addition, you increased your equity by making your mortgage payment. Most of the mortgage payment that you make each month is used to pay the interest on the loan balance for the previous month. But some of that monthly payment is used to reduce the principle of the loan. This means that, over time, lowering the principal balance and increasing the property value together gave you an increasing level of equity in your property. Many homeowners wish to re-place their older, low balance mortgage with a newer, high balance mortgage. Why? Because as a result, the equity difference is given to the borrower at closing, giving the homeowner, in many cases, a sizable amount of ready cash.
2. Lower Cost – Some homeowners with mortgage interest rates of 8% or 9% or 10% or even higher, realize that at today’s very low interest rates, they can replace their older, high-interest loan and save substantial amounts of interest over the years.
The California Refinance Mortgage Process
The California Refi process usually requires five major steps:
1. Find a mortgage lender – Finding the right mortgage lender for your situation is critical to arranging a successful, cost effective refinance transaction. RainTree Financial is widely respected mortgage lender in the lake Tahoe area and their website can provide you with a number of helpful articles and studies about the different types on mortgage lenders that are available and the benefits of each.
2. Loan Application – Your selected lender will meet with you and assist you in completing a series of forms that comprise your loan application. This application usually must be accompanied by an application or origination fee.
3. Borrower Approval – The lender will then evaluate your income, debt level, payment history, and other factors in order to provide you with Borrower loan approval.
4. Property Approval – The lender will also evaluate the property to insure that is has sufficient value to protect the lender in the unlikely event that you default on the loan. These evaluation steps usually include an appraisal, a title search, and sometimes a survey, and property inspection.
5. Closing – Once both the borrower and the property are “approved”, the final loan documents are prepared and submitted to a “closer” who finalizes the paperwork and completes the refinancing transaction.
Like any other mortgage loan transaction., a California refinance mortgage can be a very savvy financial move… or a very painful mistake… the difference is often based on the mortgage lender that you select.
And the best mortgage specialist in the Lake Tahoe area is RainTree Financial… just fill out the “Quick Quote” form and you’ll see what we mean…