Is This The Right Time to Get a Mortgage Refinance Loan in California?

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Blame it on the economy.  Home sales in California, as in almost everywhere else, have gone down slightly.  However, that is not a sign that it’s a bad time to buy.  According to real estate experts and analysts, this still points to a market that is quite stable.  Buying a house in California today could mean taking some risks but then again, when did taking out a mortgage refinance loan become 100% safe?  Besides, California is still one of the best places to settle in.

Placing hopes on the Treasury Department
If the Treasury Department does back Freddie and Fannie’s securities any time soon, mortgage rates (including those for refinancing) could decrease.  Borrowers could probably look forward to one percentage point.  Should you take a 30-year mortgage on fixed rates, for example, you could look forward to around 4.5%.  If that happens any time soon, the market should expect some brisk activities.

Buying a property in California
There are certain things you have to expect when buying a home in California, some of which you might not have to contend with if you’re buying a home elsewhere.  Most houses in this state are quite expensive and if you have a particular zip code in mind, be prepared to spend – really spend.  

The jumbo buck stops here
Most of the properties you’ll find in California might require you to obtain a jumbo loan, although that is not to say that you can’t find one that is categorized as a regular loan.  If you’re looking to settle any time soon in California and are placing your hopes on discounted loan rates, there are two figures you need to remember: $417,000 for conforming loans and $625,500 for jumbo loans.  These are the limit restrictions beginning in 2009.  

The present loan limit is still around $100,000 more than the jumbo loan limit restriction but it’s only good until the end of 2007.  If your mortgage amount doesn’t exceed these limits, you could look forward to financial backing from Freddie or Fannie.  Go overboard and you might find obtaining the financing you need at the low rates you want could be a challenge.

Getting mortgage refinance loans in California
There are a few important factors you need to consider when shopping for mortgage refinance loans in California.  Keep these in mind to make sure that you land the best deals that are right for you and your resources.  These factors include:

– The length of time you plan to live in your house (if you plan to move out within the next 5 or 10 years, getting a mortgage refinance loan in California is not a good idea)

– The difference in your current interest rate and the new mortgage refinance rate

– Your built-up equity

– Closing costs (there are fees and charges that you will have to pay for all over again)

– The mortgage insurance you’re paying on the property (if you have it)

– If you’re planning on getting cash-out refinancing

When getting a refinance loan for your mortgage in California, always consider the totality of the advantage of the new rate.  If you can’t get an interest rate at a lower figure, getting your home refinanced may require you to shell out more money in the long term.  Check if the monthly payments are affordable and if the overall result points to a great deal.

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