Best Mortgage Refinance Companies in Temecula

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.
  

• Should “Dream for All” program borrowers in Temecula refinance their homes?

  Those in Temecula who bought their homes through the California Housing Finance Agency’s “Dream for All” program should only refinance their homes once it appreciates in value. This is because they would have to reimburse the state the original amount invested, plus a percentage of the home’s increase in value. However, lower-income borrowers may be able to keep more of their equity.

• When is a Temecula refinance not a good decision?

  Depending on the current interest rates, it may not be a good option for Temecula homeowners to refinance if they are planning on moving in the next six months. Similarly, those who have less than ten years on their mortgage are advised not to refinance unless the rates are low enough.

• How does refinancing in Temecula help with debt consolidation?

  Taking out a debt consolidation loan may allow Temecula homeowners to use the amount of equity in their homes to pay off debt such as credit cards, personal loans, and auto loans. Because refinance interest rates are typically much lower than that of unsecured high-interest debt, borrowers may be able to save thousands of dollars per year.

• Who is eligible for a Temecula cash-out refinance?

  To be eligible for a cash-out refinance in Temecula, homeowners may need to have at least 20% equity in their home. In some cases, lenders will also require a credit score of 620 or higher. In addition, one’s debt-to-income ratio must not be more than 50%. Qualifying debts include student loans, credit cards, and any type of federal debt.

• How long does the Temecula cash-out refinance process take?

  Depending on the complexity of one’s loan, taking out a cash-out refinance in Temecula typically takes up to 45 to 60 days. At the closing, borrowers will be able to receive their money after three days. Under federal law, they may use this period to change their mind about refinancing their mortgage.

• 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.