Mortgage refinance, Huntington Beach, CA, means taking out a new home loan to replace an old one. Homeowners who want to stay in the same home but with different mortgage terms apply for refinancing.

So, are you one of those people planning to refinance a mortgage? Here are the steps that can guide you through the process.

Step 1: Determine what you want to get out of the refinancing application.

Determining the purpose of refinancing can help you navigate the process a lot easier. You must understand your goal. Do you want to pay off your home more quickly? Or do you want to save some amount by taking advantage of low-interest rates?

Step 2: Evaluate your financial situation.

You need to make sure you are in a better financial condition when applying for a mortgage refinancing. That is crucial to getting a good deal. What is your credit score? How about your debt-to-income ratio? How much equity do you have in your home? If you find out your financial situation is not strong enough, you might want to wait until it gets better.

Step 3: Shop around for the best rates

Shop-compare is a strategy that never gets outdated. With the help of a mortgage broker, you can gather information about prospective lenders giving the best deals. The process should come a lot easier today, knowing that lots of this information are readily available online.

Step 4: Submit refinancing applications to multiple lenders

Speaking of shopping around, apply for pre-approval with several lenders to scrutinize one offer to another. Getting pre-approval letters from different companies will help effectively compare interest rates side by side.

Step 5: Choose your lender and refinance terms.

Step #4 should allow you to compare each lender’s interest rates and fees. By now, you should be able to make a sound decision on which one to choose based on your criteria. You will also need to decide whether you take a fixed-rate or adjustable-rate and a term length. Again, your decision should match the goal you want to achieve.

Step 6: Schedule an appraisal.

Note that not all mortgage refinance, Huntington Beach, CA, applications require an appraisal. But in case your lender requires it, you will want to schedule it pretty soon after locking in your rate as rates stay locked in only for a certain period, usually 60 or 90 days.

Step 7: Choose your refinanced mortgage.

Finally, you close on the loan before your rate lock expires. During this time, you will pay the closing fees. The closing process is similar to how you applied for your first mortgage, only that you already live in the property this time.

Online looking for a reputable mortgage broker to help you with a mortgage refinance, Huntington Beach, CA? Contact Homeplus Mortgage today at 800-810-PLUS (7587).