Best Mortgage Refinance Companies in Santa Maria, CA

FAQs

• 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 borrowers in Santa Maria who want to move into a new house consider submitting a mortgage refinancing application?

  It would be wise to reevaluate applying for a refinance mortgage in Santa Maria if you foresee a potential move or substantial changes to your living circumstances. Since closing expenses for refinancing range from 2 to 5 percent of the loan's principal, it can take some time for you to recover costs. If you intend to move within a few years, the expenses of refinancing can outweigh the advantages.

• Are there any costs involved in completing a mortgage refinance in Santa Maria?

  Yes, completing a mortgage refinance or closing a housing or mortgage loan in Santa Maria will require borrowers to pay the following fees:

  • Tax Service
  • Lender Fees
  • Credit Report
  • Flood report
  • Escrow
  • Title Insurance
  • Notary
  • Recording Fees
  • Appraisal In some refinance agreements, an appraisal is not required, and in other cases, the lender will reimburse the appraisal charge.

• Who are qualified for a refinance mortgage in Santa Maria?

  Individuals eligible for a mortgage refinance in Santa Maria must possess the following qualifications:

  • Minimum credit scores: Must pass the credit score requirements set by the lender.
  • Loan-to-value limits: The LTV must be at or less than the maximum limit established for a particular refinance program.
  • Debt-to-income boundaries: To prove loan affordability, most loans require a DTI of 36%–50%.
  • Necessary assets: Must meet the required funds needed for closing costs and reserves.
  • Income: Income proof, including paystubs, W-2s, and tax returns for self-employed individuals.
  • Appraisal: Essential for cash-out refinancing to gauge equity sufficiency.

• Can someone still qualify for a refinance mortgage in Santa Maria if their prior mortgage is almost paid off?

  For Santa Maria residents who are nearing the completion of their mortgage payments, it might be prudent to consider waiting instead of opting for refinancing, even if the terms of a refinance seem more favorable than the current ones. This is because refinancing may increase overall costs and lengthen the loan term, making it less favorable in the long run.

• What can borrowers in Santa Maria do with their cash-out refinance loan proceeds?

  Eligible borrowers in Santa Maria may utilize the cash they get from a cash-out refinance loan to perform maintenance and upgrades, cover college costs, pay for a wedding, launch a business, or buy an investment property. The money may also be used as budget to pay for medical costs, unforeseen events, or for personal loans or high-interest credit card debt. By taking out a cash-out refinance loan, borrowers can borrow money using the equity in their houses as collateral.

• 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.

• How does mortgage refinance work?

  The mortgage refinance process begins with choosing a broker and filling out loan application information. The process continues through underwriting and closing. The new mortgage is then used to pay off and close your original mortgage loan. This leaves you with a new loan and mortgage payment to manage each month.

• When should you refinance a mortgage?

  If your credit score has improved or mortgage interest rates have dropped, refinancing can potentially save you money. Other reasons to refinance your mortgage include getting a fixed rate instead of an adjustable one or getting a shorter loan term. An increase in your home’s value that can let you access more equity is another reason to refinance.

• How much does it cost to refinance a mortgage?

  The average cost to refinance a mortgage is $5,000. This amount varies, based on the state and county where the property is located and the loan amount. Common fees incurred when refinancing a mortgage include:
  

  • Appraisal fee
  • Broker’s fee
  • Credit check fee
  • Loan application fee
  • Recording fee
  • Title search and insurance fee

• How soon can you refinance a mortgage?

  Some lenders make borrowers wait a minimum of six months before accepting a new mortgage refinancing application. However, when that happens, borrowers can check with other lenders to find one that doesn’t require a wait before refinancing. A mortgage refinance broker can guide you to lenders that allow immediate refinancing.

• How long does it take to refinance a mortgage?

  The average amount of time it takes to refinance a mortgage is 45 days. In some cases, it may be possible to get it done faster. There also may be times when it takes longer to get a mortgage refinanced.

• What is the average closing cost to refinance a mortgage?

  The average closing cost when refinancing a mortgage is $4,345. Closing costs may be much higher or lower depending on the amount of money borrowed. If you see an ad that says there are no closing costs, the costs are factored in elsewhere in the terms of the loan.

• How often can you refinance a mortgage?

  You can refinance a mortgage as often as you like, however, if you refinance frequently, it can cost more in fees than you save on interest. Some reasons for refinancing repeatedly include a sharp drop in interest rates or going through a life event, such as a divorce.

• When is it worth it to refinance a mortgage?

  It’s worth it to refinance when interest rates drop and refinancing will save you money. It also may be worth refinancing if you need to access some of your home’s equity to cover other expenses. Refinancing may be worthwhile if you're switching from a variable to a fixed rate mortgage.

• Can you refinance a mortgage with no closing costs?

  You can refinance a mortgage without paying closing costs at the time. However, those costs are still owed and are factored in elsewhere in the financing. Lenders either add the costs to the principal owed or increase the interest rate on your refinanced mortgage loan.

• Can you refinance a home equity loan into a mortgage?

  You can refinance a home equity loan into a mortgage in some situations. You have to have excellent credit to do this. Additionally, you must have enough equity in your home to qualify for a new mortgage that pays off the existing mortgage and your home equity loan.

• Can you refinance a mortgage without a job?

  In some situations, you can refinance your mortgage if you don't have a job. It depends on the lender, because some will allow it and others won’t. A qualified mortgage refinance broker can help connect you with lenders that consider your situation. You have to submit documentation about your unemployment and the income you have.

• Can you refinance a mortgage with bad credit?

  It’s possible to refinance a mortgage if you have bad credit. If your payment record with your current lender is good, you can discuss refinancing with that lender. You may also be able to refinance a mortgage by going through a government-backed lender, such as the USDA or FHA.

• Can you refinance a second mortgage?

  It’s possible to refinance a second mortgage. If your credit score improves or interest rates drop, refinancing a second mortgage may save you money. Either of these situations can provide a way for you to get a lower interest rate. Refinancing a second mortgage can also sometimes shorten your loan repayment period.

• Can you refinance a first mortgage and not a second?

  You can refinance your first mortgage and not the second one, but it can be difficult. You have to get the lender of your second mortgage to agree to the refinancing. The process is called resubordination, and some home equity lenders won’t agree. Additionally, lenders typically charge extra fees to resubordinate a loan.

• How often should you refinance your mortgage?

  There is no recommended frequency for refinancing a mortgage. How often you should refinance is determined by when it will save you money. If you can get better terms on your mortgage by refinancing, then it’s a good time to take action.
  
  

• What should you expect when refinancing a mortgage?

  When refinancing a mortgage, expect to answer a lot of questions and provide documentation to back up your answers. You'll may also pay fees and closing costs of around $5,000. Additionally, expect to start over in terms of building home equity, because refinancing takes the amortization process back to the beginning.