Mortgage Refinance California
What Is a Mortgage Refinance?
A mortgage refinance is when you replace your current home loan with a new one. Homeowners refinance their homes for various reasons. Some do it to secure a better, lower interest rate, to reduce the monthly payment, or to tap into the home’s equity. Other homeowners refinance their mortgage so that they can pay it off faster, get rid of Federal Housing Authority (FHA) mortgage insurance, or switch from an adjustable-rate mortgage to a fixed rate. TrustLink Mortgage can help you with a mortgage refinance in California, Arizona, Idaho, and Colorado.
How Does It Work?
When someone buys a home, they borrow money in the form of a mortgage to pay for it. The money from the mortgage goes to the seller of the house. Refinancing a mortgage means getting a new mortgage with better terms. Instead of going to the home’s seller, the new mortgage pays off the old one and the money goes to the lending institution. Just like the original mortgage, you must qualify for the new loan and meet all the lender’s requirements. You must file an application, go through the underwriting process, and go to a closing.
When and Why You Should Refinance.
Before heading down the mortgage refinancing road, consider why you want to refinance your home loan. Let your mortgage refinancing goal guide you from the beginning. Your goal will help you find a lender and get the best deal possible.
Lower Monthly Payments – Lowering your monthly payment keeps money in your pocket. Situations change and credit scores improve over time. When securing your first mortgage, you may have a high interest rate. Refinancing at a lower rate will lower the monthly payment.
Tap Into Home Equity – When you refinance and borrow more than you owe on the current mortgage, the lender will give you back the difference. This is called a cash out refinance. That money can be used however you want.
Pay Back the Loan Faster – Refinancing a 30-year mortgage to a 15-year mortgage cuts the loan’s length in half. That means you pay it back faster and you pay less interest on the loan.
Switch To a Fixed-Rate Loan – Interest rates on adjustable-rate mortgages will go up over time, meaning you pay back more money. Refinancing to a fixed-rate mortgage means the interest rate will never change.
Contact TrustLink Mortgage today for a mortgage refinance in California, Arizona, Idaho, and Colorado.