Southern California Refinancing Mortgage

Written by Stephanie Dula
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Refinancing has grown steadily in popularity over the last few years in southern California and elsewhere as more people recognize the benefits of this type of loan. Since many refinancing loan offers come with false promises of huge sums of cash for practically nothing in return, it's important for consumers to be aware of all that is involved in the process. Like any other loan product, refinancing has its benefits and drawbacks.

For example, refinancing may not be the best option for someone who is planning on moving in the next few years. Refinancing costs money like any other loan in the form of transaction fees and closing costs. It's important to be able to stay in the home long enough to recover one's losses from these types of fees.

Those with a prepayment penalty on their original mortgages may not reap the benefits of a new loan either, since they will be paying off the existing mortgages earlier than agreed upon. However, refinancing does make sense for many people who wish to eliminate the private mortgage insurance they may still be paying for on their existing mortgages. If the current balance of their mortgages is less than 80 percent of the current value of their homes, they could be good candidates for saving real money through refinance.

Refinancing Musts

When potential refinancers can identify the reasons they may want to secure this type of loan, they will be better prepared to search for a suitable program. When they acquire current knowledge of interest rates for their markets, they will better be able to narrow down their choices when it comes to offers from lenders. Additionally, knowing exactly what documentation is necessary for loan applications can help speed the process.

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