How To Get a Home Refinance Loan San Jose CA

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The biggest bill that most people pay on a monthly basis is their home mortgage. At some point, you may consider refinancing your home mortgage. There are a few common reasons that one would consider a refinance.

1. To lower your interest rate. As loans are traditionally paid over 15 or 30 years, even a fraction of a percentage change in your interest rate can lead to substantial savings.
   
   
2. To cash out and to utilize your equity. As housing prices increase and your loan principal decreases, you build equity in your home. Equity is the difference between the value of the property and what you owe on it. Some people refinance to take cash against the equity they have built on the home.
   
   
3. To lower your monthly payments. If you have paid down a significant amount of the initial loan principle, you can refinance the loan for lower payments. This is done by "restarting" the time it will take for you to pay the loan in full. For example, if you are 10 years into a 30 year loan, you can refinance the loan for another 30 years resulting in lower monthly payments (depending on current interest rates, of course).
   
   
4. To pay off the home sooner. You may choose to refinance the home to choose a shorter life span on the loan. For example, refinancing a 30 year loan to a 15 year loan.

So if you choose to refinance a loan, where do you start? Bear in mind that there are usually fees to refinance a home loan. These can range from a few hundred to multiple thousands of dollars. There are a number of ways to refinance your loan.

1. Contact your current mortgage company. If you look at your monthly bill or last statement, you should find a phone number for customer service. Give them a call and discuss the loan options that the company offers for refinancing. This may prove to be the easiest method as the current mortgage company will already have all the necessary information on the property and borrowers.
   
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Author: Brad Halvorsen

Pamela Lamarre - CA State Funding Group

(415) 706-4479
767 Panorama Dr.
San Francisco, CA