california home mortgage
Written by admin on April 20th, 2007 in Mortgages.
Refinancing Your Mortgage to 100% in California
Refinancing your mortgage in California to 100% can help secure low interest financing. You may choose to use your equity to pay off bills, make home improvements, or invest in a college education.
But refinancing in the volatile real estate market of California carries higher than normal risks. Make sure you factor in your local housing market trends and read the fine print of a loan offer when making a refi decision.
California s Housing Values Fluctuation
Home prices in California seem to have a boom or bust cycle. Homeowners saw falling home values in the 1990 s and again in 2005 2006, which can make 100% refinancing a risky venture.
But as of October 2006 it looks like home prices are again stabilizing if not increasing in California, especially for higher end homes. Areas in California which didn t see the rapid rise in prices have also had consistent home values.
The Risk Of 100% Refinancing
Refinancing your mortgage can benefit you in many ways tax breaks, lower rates, cheap financing. But you can also be caught owing more than what your home is worth if property prices in the area drop. This becomes a problem if you have to sell for whatever reason.
Another risk of cash out loans is that your terms may be less favorable than your original mortgage. You will also have to pay for private mortgage insurance until your home equity reaches 20%, unless you have a subprime loan.
Protect Yourself From A Bad Refinance
To protect yourself from an underwater loan, take some time to research lenders. Make sure that you get a loan with good rates and minimal fees. Online, you can quickly find lenders who will provide you with personal quotes.
But before you sign for your new mortgage, consider your long term housing plans. Read your local paper to see if homes in your area are expected to drop in value and decide how long you plan to stay in your home.
california home mortgage, Mortgages, refinancing, Refinancing Your Mortgage
February 7th, 2008 at 2:36 am
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