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California Home Loan Refinance

Deciding Whether Mortgage Refinancing is the Best Choice for You

When approaching a home loan refinance in California, you should consider whether you have the financial resources you need to invest in refinancing. Like all good things, refinancing comes with associated costs. In order to reap significant benefits, you must be willing (and able) to absorb those costs.

How to Determine If Refinancing Will Be Worth the Cost

To determine if refinancing is worth the fees and the additional interest that will be added onto the principal of your loan, plug your projected expenses into this formula:

    Closing Costs ÷ (Old Mortgage Payment – New Mortgage Payment)


    # of Months it will take to Recoup your Refinancing Expenses

For example, suppose it will cost you $6,000 to refinance your California home loan and your mortgage payment will be $230 lower a month. Simply divide your closing costs ($6,000) by the $230 you’re saving per month and you’ll arrive at the number of months if will take for you to recoup your expenses. In this case it will take 26 months (about 2 years) to recoup the expense of refinancing. If you are okay with the amount of time it takes to recoup your closing costs, then refinancing may be a viable solution in your situation.

Learn Mortgage Insider Secrets

If you are seeking the lowest California mortgage interest rates, you should know that for every .25% that you unknowingly agree to overpay during the mortgage refinancing process, your mortgage broker obtains a kickback equal to 1% of the amount of your refinance loan. To make sure you receive the best deal, register for my free Underground Mortgage videos to learn how to avoid unnecessary markups during your refinance. These free videos take you step-by-step through refinancing your mortgage and teach you how to get a wholesale California mortgage interest rate with no junk fees.

Register for my free videos today to learn how to obtain the
best California mortgage refinance rates available.