There are many opportunities available for homeowners to consider a refinance of their current mortgage. Refinancing your mortgage in California can be a smooth process if you chose the right mortgage company.
At JB Mortgage Capital, Inc. we offer a wide variety of refinancing options; Conventional loans, Conventional-Conforming loans, FHA home loans and others. From excellent credit to less than perfect credit we’re prepared to meet your mortgage needs.
Refinancing Your Mortgage In California
Here are just some of the reasons for refinancing your mortgage. Every situation is different so obviously, homeowners are going to have different reasons. No matter what your reason is to make sure that at the end of the day a refinance makes financial sense.
- Interest rates are lower than your current interest rate.
- You’d like to move from a 30 year fixed interest rate to a 15 year fixed interest rate so you can pay off your home faster.
- You’d like to renovate your home so you need to cash out some of the equity in your property. Or maybe you need cash to pay for educational or medical expenses.
- There is little to no equity in the home and you need funds to renovate your home. The FHA home renovation loan program is a perfect fit for this. The program allows you to borrow more than the home is worth (money must be used to renovate/repair the home).
- You’d like to get rid of FHA Mortgage Insurance
- There’s a benefit to combining your 1st and your 2nd mortgage into one loan.
When you contact a Loan Officer to discuss your refinance option; make sure he or she takes the time to listen first and then make suggestions on how best to proceed.
Loan Options To Consider
Below is a brief overview of loan options to consider when refinancing your mortgage in California. Most programs offer a 30 year fixed and a 15 year fixed loan programs (some offer a 25 year, 20 year and 10 year) as well as Adjustable Rate Mortgage (ARM) loan programs.
Essentially a Conventional home loan is any home loan that is not backed/guaranteed by the federal government. Sometimes people confuse Conventional and Conforming (they are not the same). A Conforming loan “conforms” to Fannie Mae or Freddie Mac guidelines. Some Conventional loans do not do that.
This is the most common loan program and usually its just referred to as Conforming loans. California home loans under the Conforming loan program offer an excellent opportunity for homeowners to refinance.
FHA Home Loans:
If you currently have an FHA loan you may want to check out the Streamlined Refinance option. It’s super fast and you don’t need an appraisal nor income documentation. We offer a completely breakdown of FHA home loans and we believe it’s the best FHA home loan guide on the internet.
There are some unique home loan products available in 2020. From bank statement loans to private money loans. If you think you might fit into this category be sure to ask your Loan Officer what are the options available.
Mortgage Pro-Tips For Refinancing
Mortgage Pro-Tip #1
Be open to suggestions: We always recommend you work with a Loan Officer that has at least 5 years of experience. And when you work with an experienced Loan Officer you’ll find that he/she might see an opportunity to save money going with a different loan option that best meets your needs.
Mortgage Pro-Tip #2
Only refinance if it makes sense: I know; this seems like a no-brainer however not enough homeowners take the time to break down the numbers to see if a refinance makes sense. And it’s not always about the numbers. For example if you’re moving in the next 1-2 years it may not make sense unless your savings are significant.
Mortgage Pro-Tip #3
Paying points: Generally speaking it usually does not make sense to pay more than 1 point (discount and origination) based on current spreads between interest rates. Are there cases where it might make sense; sure however most of the time you should keep the costs associated with the loan at or below 1 point (discount and origination).