Best Mortgage Refinance Companies in Chico

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.
  

• Can you refinance your home loan in Chico even if your credit is not perfect?

  Yes. Even if you have a good credit score, you can still refinance to improve your financial situation in Chico. You can request that a mortgage professional connect you with lenders who provide such programs. Some may even allow you to consolidate your mortgage and credit card debts, as well as provide long-term solutions such as refinancing when lower rates become available.

• Is getting a lower interest rate the sole purpose of refinancing in Chico?

  No. Although obtaining a lower interest rate is advantageous because it results in lower monthly payments, refinancing a mortgage can be done for a variety of reasons. Chico homeowners may refinance to leverage equity and obtain cash for renovations or investments. Others may wish to extend the loan term to pay less each month, or shorten it to pay off their mortgage sooner.

• What kind of home improvement projects will benefit from a refinance in Chico?

  If the project will add value to a Chico property, refinancing is a good idea. These projects include garage door, entry door, and window upgrades, HVAC and basement conversions, and deck additions. Remodeling the bathroom and kitchen, replacing siding, and investing in hardwood floors can all increase the value of your home. To be safe, stick to renovations that improve curb appeal and avoid excessive customization, which may turn off prospective buyers.

• What costs should you consider during a Chico refinance, aside from the usual appraisal and processing fees?

  Check with your Chico mortgage company to see if they charge a prepayment penalty, which is a fee for paying off the loan early. Points are also available in some loan programs. These are tax-deductible interest discounts paid to reduce your rate by up to 3 or 4 percentage points. Each point costs an extra 1% of your loan amount. A mortgage professional can tell you if these apply to you.

• Can you refinance your mortgage in Chico after doing so previously?

  Yes, you can absolutely refinance again. It is a common misconception that refinancing can only be done once. Even so, when refinancing in Chico, certain factors must be carefully considered. One example is home equity: if you have already cashed out on it, you may not have much left to meet lender requirements. The costs of refinancing are also significant. Before you proceed, compare the fees to the potential refinance savings.

• 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.