Best Mortgage Refinance Companies in Berkeley

Frequently Asked Questions

• Introduction

  Refinancing a mortgage can be a complicated process, and hiring a mortgage refinancing broker can make it simpler and faster. There are several things you can do to protect your interests and help your broker complete the process for you.
  

  
  

  Check a potential broker’s online reviews to find one with a good reputation. In addition to the opinions of past clients, check to see if a broker has an online portfolio, which can support the reviews you find from past clients to show a broker’s trustworthiness. This can also help you establish if a broker has handled financing for properties similar to yours.
  

  
  

  Get a written summary of a broker’s rates before committing so you know exactly what hiring your chosen mortgage refinance broker will cost. Find out which lenders work with your broker and what information they need to successfully refinance your mortgage.
  

• How much will the lender charge you if you are late with your mortgage payments in Berkeley?

  After a 15-day grace period, you will typically be charged between 4% and 5% of the total overdue amount. The actual charges can be found in Section 6, Borrower's Failure to Pay as Required, of your promissory note or Form 3200. If you are 60 days late with your mortgage payments in Berkeley, you will most likely be charged an additional late fee. Your delinquency may have already been reported to credit bureaus by this point, affecting your credit score.

• Can you refinance a loan from a predatory lender in Berkeley?

  Refinancing from another Berkeley lender is an excellent way to get out of the predatory lender's loan. You will actually be taking out another loan to pay off your current loan. Although the abusive lender may penalize you with high prepayment penalties, you may save more money in the long run if you stick with your current loan. You must also report predatory practices to the appropriate authorities, such as the Federal Trade Commission or the Consumer Financial Protection Bureau.

• What are the current conforming loan limits in Berkeley?

  For a one-unit property in Berkeley, the limit is $1,089,300. The limit to a conforming loan for a two-unit property is $1,394,775 and for a three-unit one, it is $1,685,850. Finally, the limit for a four-unit property is $2,095,200. These values are applicable to primary residences, secondary homes, and rental properties.

• Can you resell Below Market-Rate (BMR) homes in Berkeley?

  Yes, but you must notify the city at least 60 days in advance. You must obtain the buyer's eligibility from the city. There are also resale restrictions to consider. More information on the BMR program can be obtained from the City of Berkeley's Department of Health, Housing, and Community Services. Email HHCS@berkeleyca.gov or call (510) 981-5400 to contact the department.

• What can you do after your refinancing application in Berkeley was rejected?

  If your application was denied due to your credit score, review your credit report and dispute any errors. You can also try to improve your credit score by making on-time payments and paying off any outstanding balances. If the rejection was due to the value of your home, you may want to consider refinancing with a non-qualified mortgage lender. The lender may offer programs tailored to Berkeley residents who have experienced foreclosure or bankruptcy.

• How do you refinance a mortgage?

  Decide why you’re refinancing, such as to get a lower interest rate, pay off your loan faster, or to get a lower monthly payment. Share your credit information with your broker along with information about the equity you have in your home. Review your mortgage refinance broker’s quotes and choose the best loan terms.