Home Loan Refinance - San Diego Home Loan Refinance

Why refinance?

More than any other time in recent years, interest rates are low for mortgage loans. This means that people wanting to buy a home or refinance one can do so at unbelievable rates. Considering that in the 1980s, mortgage rates were as high as 18% and today as low as 6%, you can see that this is the opportune time to take advantages of being a homeowner.

Top reasons to secure a San Diego home loan refinance

Although some mortgage bankers say the refinancing boom has ended, there still seems to be a large number of people interested in taking advantages of better interest rates and loan programs. In fact, experts are now agreeing that 2004 will turn out to be the sixth largest year in history for refinancing home loans.

In all, there will be more than $447 billion refinanced just this year. In 2002, that number was $2.2 trillion. Although the numbers have greatly declined, $447 billion is certainly nothing to sneeze at. The reason people refinance a home varies. Some people want to take out equity from the home for home improvements or personal investment (college, major purchases, etc.).

Other people are eager to get rid of mortgage insurance so they switch over from a fixed-rate mortgage to one that is adjustable. By switching to an adjustable-rate mortgage (ARM), you will still have a fixed rate over a specified amount of time. Then, the rate would adjust every year.

For instance, if you chose an ARM that would remain the same for three years but then adjust every year thereafter, you would be refinancing with a 3/1 ARM. By making this one change, you will be surprised at how much money can be saved!

Preparing to secure a San Diego home loan refinance

When a person buys a home, they have to be prepared to go through a lengthy process that includes tons of documentation. If you are considering a San Diego home loan refinance, this too will require that you come prepared with specific documentation.

Now, if you are in a hurry and need to move the loan along quickly, the more you can be prepared the faster and easier the loan process will go. Therefore, before you begin your search for the right lender to handle your refinance, gather the following documentations:

If self-employed:
- Last two years of Federal Income Tax Returns (all schedules)
- Year-to-date profit and loss/balance sheet
- Corporate tax returns

If history of bankruptcy:
- Copy of petition/discharge, handwritten explanation of the reason, evidence of excellent credit since the bankruptcy

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