Irvine Refinancing Attorney Realtor

Refinancing Mortgages for Homeowners in Los Angeles, Orange, and San Diego Counties

If you are struggling to keep up with mortgage payments are worried you could soon be in default, you will want to explore every possible option to avoid the possibility of foreclosure. Depending on the current real estate climate and your unique circumstances, you may be able to facilitate a refinancing of your current mortgage.

Refinancing involves replacing an existing mortgage with a new loan with more favorable terms. It can be an extremely useful and beneficial process if you have substantial equity in your home. However, in some situations, refinancing costs can sometimes outweigh the benefits.

Our Irvine refinancing Attorney/Realtor can help you avoid default by leveraging all available legal tools and strategies. We are familiar with how to assess market conditions, loan agreements, and other mitigating factors that go into determining whether refinancing is your best option. Our team at Lawyers Realty Group draws upon our over 50 years of professional experience to help California homeowners make effective real estate decisions.

Benefits of Refinancing

Refinancing has the potential to confer substantial benefits. The specific advantages that may be available will depend on your individual circumstances and present market conditions. In some cases, this means that refinancing can save you a considerable amount of money in the short and long term.

Benefits of refinancing your mortgage in California can include:

  • Lowering your monthly payment amount. Many refinancing efforts result in homeowners having to pay less per month. This increased financial flexibility can help you avoid default or give you the means of paying off your mortgage faster.
  • Reducing the overall length of your loan. Many mortgages have 30-year terms. If you have more financial resources than when you initiated your loan, it may make sense to reduce the length of the loan agreement in order to pay it off sooner.
  • Leveraging equity to access cash. If your home’s value has substantially risen, you may be able to “cash-out” some of your equity. These funds can help you finance renovations or manage other obligations.
  • Switching from adjustable rates to fixed rates. In an adjustable-rate mortgage, your monthly payment amount can fluctuate with changing interest rates. Refinancing can allow you to pivot to a fixed-rate mortgage that guarantees a static monthly installment amount.
  • Consolidating debts. Refinancing can permit some homeowners to consolidate home equity lines of credit with their mortgage principal. Home equity lines of credit often have adjustable rates and short repayment terms, so consolidating them can result in a single, fixed-rate payment that is more cost-efficient.
  • Eliminating private mortgage insurance. If you are years into your existing mortgage agreement and have already paid a large portion of your principal, you may no longer be required to pay for your private mortgage insurance as part of your new loan agreement. This results in a lower monthly payment.

Not every homeowner will be able to access all of these benefits. It is important to speak to a qualified professional before committing to a refinancing endeavor. We will always be straightforward with you about whether refinancing is likely to support your goals and whether a new loan will be financially tenable.

Understanding Reverse Mortgages

If you are at least 62 years old and have considerable equity in your home, you may qualify for a reverse mortgage. This allows qualifying homeowners to leverage the equity in their homes to access funds from their lenders through lines of credit, lump sums, or monthly installments. This can also result in a homeowner not having to pay off the rest of their mortgage principal unless certain conditions are met, such as the sale of the home or an absence greater than 1 year. At that point, the funds from the reverse mortgage become “due” and must be repaid.

At Lawyers Realty Group, we have helped thousands of California homeowners navigate refinancing and other complex real estate transactions. We will always be transparent in helping you understand whether refinancing will benefit you. Should refinancing not be a viable option, we can assist you in exploring other strategies that can help you keep your home.

When Does It Make Sense To Refinance?

With mortgage refinancing, timing is everything. In many cases, your home’s current value and the local real estate market’s overall condition will play huge roles in determining whether refinancing makes sense.

Our Irvine refinancing Attorney/Realtor considers many factors when assessing a new mortgage, including:

  • Equity in the home. If your current property value greatly exceeds the value of your mortgage, you may be in a good position to pursue refinancing. Some of this equity may be able to be “cashed out” in cash-out refinancing.
  • Interest rates. If current interest rates are lower than the interest rate on your mortgage, refinancing can help you save a significant amount in the long term.
  • Current loan balance. Your progress in paying off your mortgage principal will play a role in whether refinancing makes sense. If you are multiple years into a 30-year mortgage, it may be sensible to pursue a shorter mortgage term as part of your new loan agreement. Otherwise, the amortization period will likely be reset, and added interest costs can negate other benefits of refinancing.
  • Presence of advantageous or disadvantageous elements. If your current mortgage has an adjustable rate, switching to a fixed rate can be extremely advantageous. However, if your current agreement includes interest-only or negative amortization loans, you will likely be unable to maintain those payment-lowering benefits in a new agreement.
  • Costs of refinancing. Completing a refinancing transaction has all of the expenses associated with closing an initial mortgage agreement. These costs must be taken into account when weighing the overall potential benefits of refinancing.

Generally, it can be worth considering refinancing if you have substantial equity in your home and current interest rates are lower than that of your existing mortgage agreement. If current interest rates exceed the rate that you are presently locked into, refinancing will likely not save you money.

Declining real estate values can also make refinancing untenable. If you lack equity in your home, refinancing will probably not be possible. Homeowners that are currently in default will also face tremendous difficulties should they attempt to refinance.

Learn more about other loss mitigation options on our website.

If you are struggling to make mortgage payments or are wondering if refinancing might benefit you, do not wait to call our number (949) 264-0966 or contact us online.

Risks of Refinancing

Refinancing replaces your old mortgage with a new one. That means you will need to negotiate, finalize, and close a new real estate loan. In theory, your new loan agreements will have more favorable terms, but this is by no means guaranteed.

All homeowners must weigh the costs and benefits when considering whether to refinance their mortgage. This involves carefully analyzing if potential savings generated by a refinancing exceed both the upfront costs and the long-term financial implications of the new loan. Because these deals can be extremely complex, you will likely need professional guidance.

Our Irvine refinancing Attorney/Realtor can help you evaluate the risks of a new mortgage. We will work with you to understand your goals for your home and advise whether a new loan can help you achieve them. We can also assist you throughout the loan negotiation and finalization process to ensure that there are no surprises after you close.

Schedule a free initial consultation with us to evaluating whether refinancing is possible and whether it makes sense for your situation. Contact us online or call (949) 264-0966 today!

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