What does it mean to Refinance?
A mortgage refinance replaces your current mortgage with a new one, which can lower your interest rate, shorten your term, switch you from an adjustable to a fixed rate, or let you pull cash from your equity. At California Home Solution, we help homeowners across California refinance into the loan that actually fits their goals, and because we are an independent broker, we compare programs across many lenders rather than offering just one.
Who is eligible to Refinance a Home?
If you are a homeowner with a mortgage, you may be eligible to refinance your loan if you meet certain requirements. These include having equity in your home, meeting the minimum credit score requirement, providing proof of income, having a favorable debt-to-income ratio, and having proof of steady employment. The eligibility requirements can vary depending on the lender and the type of refinance loan you're applying for. By meeting the eligibility requirements, you may be able to take advantage of lower interest rates, reduced monthly payments, and other benefits that come with refinancing your mortgage. Contact us today to see if you meet the specific requirements and to determine your eligibility for refinancing your home.
What are the benefits of Refinancing?
Refinancing can provide several benefits, including lowering your monthly mortgage payments and shortening your loan term. By shortening your loan term, it will help you to save money on interest and pay off your loan quicker. Refinancing can also allow you to consolidate high-interest debts like credit cards into one lower interest mortgage payment. Since interest rates can fluctuate, refinancing can allow you to secure a better interest rate than you had when you initially purchased your home.
Should I Refinance my home?
Whether or not you should refinance your home depends on a variety of factors. Some factors you should take into consideration are the length of your remaining mortgage and your future financial goals. If you're paying a high interest rate, refinancing could allow you to take advantage of lower rates and save money over the life of your loan. If you plan to move in the near future, the costs associated with refinancing may outweigh potential savings. For those looking to remain in their homes for the foreseeable future, refinancing your home might be right for you!
Refinance Options for Self-Employed Borrowers and Investors
Not every refinance fits the standard mold, and that is where we stand apart from the banks. We can refinance self-employed borrowers using bank statement income instead of tax returns, and we can refinance investment properties using DSCR, which qualifies on the property's rental income rather than your personal income. If a bank has told you your income is too hard to document, we very likely have a refinance program that still works for you. We also handle cash-out refinances for homeowners who want to tap equity, and we can help you decide between a cash-out refinance and a HELOC depending on your current rate.
Thinking about a mortgage refinance? Call California Home Solution at (818) 999-6070 or start your application online. We will run your numbers and show you whether refinancing saves you money, and which program fits best.
Frequently Asked Questions
What does it mean to refinance a mortgage?
A mortgage refinance replaces your existing mortgage with a new one on different terms. You pay off the old loan and take on a new one, often to secure a lower interest rate, shorten or extend the term, switch from an adjustable to a fixed rate, or pull cash from your equity.
When is refinancing worth it?
Refinancing tends to make sense when you can lower your rate, when you want to shorten your term to pay off the loan faster, when you want to switch from an adjustable to a fixed rate for stability, or when you want to tap equity. If you plan to move soon, the closing costs may outweigh the savings, so the right answer depends on how long you will stay in the home. We run the numbers with you before you commit.
How much does it cost to refinance?
A refinance carries closing costs similar to your original mortgage, typically in the range of 1 to 3 percent of the loan amount, covering the appraisal, title, and lender fees. You can often roll these costs into the new loan. We show you the full cost up front so you can weigh it against your monthly savings.
Can I refinance if I am self-employed or own investment property?
Yes. We refinance self-employed borrowers using bank statement income instead of tax returns, and we refinance investment properties using DSCR, which qualifies on the property's rental income. These Non-QM options mean you can refinance even when a traditional bank says your income does not qualify.
Should I do a cash-out refinance or a HELOC?
It depends on your current mortgage rate. If your first mortgage has a low rate you want to keep, a HELOC lets you tap equity without disturbing it. If your current rate is high or you want a single loan, a cash-out refinance may be better. We compare both for your situation and show you which one costs less.
