mortagesandforeclosures

by Brandon Roberts

California real estate is losing its splendor. What was once considered as one of the most costly places to live in has a number of luxurious homes on sale for affordable prices. Add up the fact that the interest rates are at its lowest and you have the perfect time to refinance. Here are some tips for you if you're looking to refinance in California:

Undervalued California Homes Before, California homes purchased at $10-15,000 could be sold off for a couple million bucks. Now however, it's the other way around. Since 2006 - 2007, home prices have dropped leaving people with negative amortization and forced them to face foreclosure. With all of these homes suddenly available in the market, this forced their values to decrease. If you refinance now, you can have lower rates as well.

Read Up All About California Refinance Before You Sign Banks in this part of the world have been a little shy about extending credit over the last few years, and in the last several months they have been positively stingy. Big multinational financial institutions were on very shaky ground, and a few (IndyMac, notably) went under. But our California banks, local and not quite so greedy, have been gaining new customers lately and may have more assets to levy right now. So don't just look to the big brand names when you are looking to refinance, check out your local credit unions and banks first.

Don't Do The Work If The Pay Isn't Worth It The rule of thumb for refinancing is not to bother unless you'll be saving two percent or more on your current mortgage. Less than that and you'll be going through a lot of paperwork and taking on a longer period of debt for not much in savings. Of course things could always get hairy again and if inflation becomes a problem (after printing up so much bailout money) an Adjustable Rate Mortgage could go through the roof in no time. No matter what the savings, moving from an ARM to a traditional fixed rate mortgage makes financial sense for your family.

You can research all you want from the net to meeting every banker from Santa Cruz to San Diego and still won't be able to learn everything about California refinance. But if you act promptly, you can always find a local banker and make sure you are saving enough and getting you're money's worth. Then you can have all those extra money left to save.

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