subject: Refinance A California Home Mortgage [print this page] If you are thinking that you would like to refinance a high interest rate, or any other type of California home mortgage, now is the time to do it. With interest rates at near historical lows that are sure to rise over time, to be able to lock in a low fixed interest rate, over time would be a good thing.
Many homeowners that have an adjustable rate home mortgage that has adjusted downward, perhaps to below where current fixed rate California home mortgage rates are should consider a refinance on their California home mortgage before the payment increases..
Whether you have a high fixed rate, or an ARM that is currently at a low rate, looking into the possibilities of refinancing a mortgage would be very good idea.
Fannie Mae and Freddie Mac both have programs where you can refinance a mortgage loan with little or no equity in your home. In fact, in some instances you can refinance a California home mortgage with as high as a 105% to a 125% loan to value ratio. The loan to value ratio is how much you owe on your home compared to what it is worth.
Ideally when you go to refinance a mortgage, you will be current on your home mortgage and will have been for the last 12-24 months. If the payment has become out of reach, enough so that even refinancing your California home mortgage will cause your house payment to still be too high, perhaps a loan modification will be a better option.
When you refinance a California home mortgage, you could save thousands, or even tens of thousands of dollars in interest and payments over time. Many of your options include no-cost California refinance home mortgage loans where fees can be rolled into the loan amount.
When you get to the point where you want to refinance, you will want to take your time and weigh all of your options. Buying down the rate, even if it costs more money up front will pay for itself over time. This should be one consideration when you refinance a California home mortgage.
To calculate the true value of the refinance of a California home mortgage, do the following. Take the cost of the refinance of a California home mortgage, providing you are paying for it yourself, say $2,000. Next take the savings in your monthly payment, lets say $200. The payback period of the refinance is $2,000/$200 or 10 months.
