mortagesandforeclosures

by Brandon Roberts

The Golden State of California has seen the values of their houses crash down. What was once considered as one of the most expensive place to live in is now showing a number of real estate available in affordable prices. With the interest rate being in its lowest in history, now is the best time to refinance. Here are three things you should know about refinancing in California:

California Homes May Be Undervalued Now For years we heard stories about retirees with 1950s bungalows in neighborhoods unloading the houses they bought for $10-15,000 for a cool million bucks. That was the bubble, and it burst in 2006 or 2007. Since then home prices have tanked, leaving millions with negative amortization and nowhere to go but foreclosure. But now with all of these homes available on the market and the bottom nearby the market may have gone TOO low. That means if you refinance now you could have some sweet equity built up in no time.

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 could surf the net, hit up the library, buttonhole every banker from Santa Cruz to San Diego and you'll never know all about California refinance. But if you act quick, find a good local banker and make sure you are saving enough to make it worth your while you can know enough to put some extra money in your pocket (and more wealth beneath your bottom line).

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