Welcome to Refinancing Guide
California Refinance Home Mortgage Article
. For a permanent link or to bookmark this article for further reading, click here.
Refinance Home
Home ownership can be a real pleasure and something we all look forward to at one (or sometimes more) time in our life. For most of us, however, homeownership also means a mortgage.
With the high cost of real estate and houses in general, very few people can purchase a home without taking out a mortgage loan. When we take out our mortgage loan, we take it out with the intention of making payments for a certain number and then owning our home free and clear.
Unfortunately, many homeowners have to refinance home loans for one reason or another.
Although there are many reasons why people chose to refinance home loans, the main reason is for better interest rates on their current home loan. Home mortgage loans are set up as one of two ways: either A.R.M. or adjustable rate mortgage or a fixed rate mortgage.
Most refinance of home loans are as a result of an adjustable rate mortgage that has increased its interest rates. When you take out an A.R.M. mortgage the interest rates and terms are amortized over a certain number of years, for example 20 years.
However, the payments are ballooned over a shorter term, like 36 months. If the interest rate you charged when you take out the loan is 8%, you will be charge 8% for the entire 36 months.
At the end of the 36 months, the loan is up for renewal. If the interest rates have increased on the market, your interest rate on your loan will also increase for the next 36 months, or balloon period. However, if the current market rates have decreased, your new loan interest rate will decrease as well.
It's almost like a crap shoot. When mortgages are up for renewal is when you see most people requesting to refinance home loans.
Refinance of home loan mortgages are sometimes done to turn an adjustable rate mortgage into a fixed mortgage. Occasionally, the market interest rate will take a large drop.
Unfortunately, this doesn't happen often, but when it does many homeowners refinance home mortgage loans to take advantage of the new lower interest rate. Unlike an A.R.M. loan, with a fixed mortgage, your interest rate is locked in for the entire term of the loan, usually 20 years or sometimes longer.
Sometimes when the interest rates go down, they don't stay down for long, but if you've just had your loan renewed to a fixed interest rate loan, the banks cannot increase the interest rate. Occasionally, the interest rates may go down even lower, causing people to refinance home loans again to be guaranteed the newer interest rate.
Refinancing is a common practice today with the interest rate fluctuating as they are and economy being so shaky. So make your payments on time to maintain a good credit rating so you'll always be eligible to refinance your home loan.
California Refinance Home Mortgage Specific links
California Refinance Home Mortgage News
HARP 2.0: Good News For Home Owners Who Are Upside Down - FreeRateUpdate.com
HARP 2.0: Good News For Home Owners Who Are Upside Down FreeRateUpdate.com HARP 2.0 is not a musical instrument, but this new federal program should ring some chords with California home owners who find themselves under water with their mortgage. HARP 2.0—known officially as the Homeowners Affordability Refinance ... Real estate industry pushes Senate on refi bill HARP 2.0 : Approved By Fannie Mae, Denied By Freddie Mac? How 7 REITs Could See A Buying Frenzy Soon |
California Refinancing Expert Explains New Home Affordable Refinance Program - SBWire (press release)
California Refinancing Expert Explains New Home Affordable Refinance Program SBWire (press release) California Refinancing Expert Jason Richardson explains all about the revamped government program that provides refinancing options to homeowners who owe more on their mortgage than their house it worth called HARP 2.0. |
When Does It Make Sense to Refinance? - MarketWatch (press release)
 New Zealand Herald | When Does It Make Sense to Refinance? MarketWatch (press release) By Peter Miller SANTA ANA, CA, May 21, 2012 (MARKETWIRE via COMTEX) -- While most people usually think of real estate "affordability" in terms of buying a home, the concept also applies to refinancing. Rate reductions may cut monthly costs and the ... HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rates at New Record Low Again Mortgage Rates: Low Mortgage Rates Push Existing Home Sales Higher 3 Reasons Why You Might Not Get Freddie Mac's 3.79% Mortgage Rate |
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances - FreeRateUpdate.com
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances FreeRateUpdate.com These low conforming mortgage rates, which are available with 0.7 to 1% origination fee, can be obtained by borrowers who have maintained a history of good credit. For home purchases and traditional refinances, lenders verify employment, ... |
Mortgage rates hit 4th straight record low - OCRegister
 Bloomberg | Mortgage rates hit 4th straight record low OCRegister APPLICATION NEWS SUMMARY: Mortgage Bankers Association weekly survey indicates loan application volume for the week is virtually unchanged. While the MBA headline points to refinance loan applications increasing for the third consecutive week with a ... Investors,Analysts Don't All See Benefits In Single Agency MBS |