With California's hot housing market, home equity has shot up for most homeowners. Higher equity ratio makes refinancing easier. With a large equity base, lenders are more likely to offer low rates.
That means you can consolidate your high interest debt, renovate your home, or finance a college education at a reasonable price. And in most cases you can use the mortgage interest as a tax deduction.
Don't Just Look At In-State Lenders
Financing companies based across the nation are competing to get your refinancing business. Offering lower rates online than in their regular offices, you can't afford not to shop online for a lender.
Online lenders will give you free loan quotes that you can compare with other offers. As long as you don't give a lender permission to access your credit report while requesting quotes, it won't affect your credit score.
What To Look For In A Mortgage Lender
Great rates are the first thing people look for in a lender, but you want to be careful about fees. 3% is average for closing fees, so watch out for anything higher. You can also use the APR to evaluate loans and find which is truly the lowest costing loan.
A good lender will also give you prompt service. With most lenders you can ask questions any hour over the phone, email, or instant messenger. They are also prompt in mailing out information and contracts.
Once you are ready to commit to a lender, the process will take about two weeks. Most of the application is completed online with only the most basic information needed. Then the contract is mailed out the next day. Funds are often dispersed in less than two weeks directly to your checking account.