A refinance mortgage in Oakland is a process where an existing mortgage on a property is replaced with a new loan from the same or a different lending institution. Once the remortgage loan is agreed the new loan provider repays the existing debt in full to the provider of the original loan. When the transaction is completed the borrower has one mortgage loan which is repayable to the new lender at the new terms agreed upon.
There are a number of reasons why borrowers consider refinancing their mortgage; in many cases the reason is to save money. The home market changes constantly as do mortgage rates, it is often in the best interest of the borrower to refinance a mortgage in Oakland to reduce the monthly payments. As interest on a loan constitutes a significant amount of the total debt, refinancing a mortgage at a lower rate of interest also positively impacts the amount that has to be repaid over the life of the loan.
When borrowers refinance mortgage in Oakland area they can free up equity that they have in the home. Equity, in real estate terms, is the difference between the market value of the property and the amount of money still owing on the mortgage. As the value of property goes up, so does the amount of equity that the borrower has in the home, equity also builds up as the borrower continues to make payments on the loan. If a property has a market value of $200,000 and the borrower has repaid $50,000 then the equity in the property is $50,000. If a borrower wishes to lay hands on any or part of this money they can do so by refinancing the mortgage.
It is a simple, straightforwardprocess to refinance a mortgage in Oakland; it is similar to any other mortgage application. The lender, either the current lender or a new lender altogether will review the applicant’s income, debt and current expenditures and the home will have to be valued as well.
Just as with the original mortgage there are certain fees that the borrower has to pay, these may include fees for the valuation as well as legal fees and perhaps a loan processing fee. The process usually takes between a month and six weeks, the time period depends on the lenders and the circumstances that surround the house being remortgaged.
