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California mortgage Refinance loans are still in high demand as the interest rate has closed down at all time lowest interest rates. Current average rate on 30 years FRM is 6.14%, which is much lower than the interest rates till last year. As the experts foresee the interest rates are soon going to surge upward.

California home owners are rushing to refinance their loan before the interest rate reaches to last year's high rate. The current low California mortgage rate can help borrowers to lower their current rate (and payments) as well as to get the cash out they need for debt consolidation, home improvements, or any other purpose.

California mortgage lenders are also struggling hard to get your business as the competition among the lenders are stiff at the moment. This is mainly because of the presence of large number of mortgage lenders in California market.

The mortgage lenders in order to increase the volume of business are coming up with attractive business plans. The market situation actually is in favor of borrowers. Fix your loan today at lower rate of interest to get the benefit of current market competition and lower interest rates throughout the loan life.

The primary reasons for considering a refinance are the following:

1- Lower current interest rate and create cash flow

2- Convert ARM to a permanent fixed interest rate

3- Convert fixed interest rate into a ARM

4- Turn equity into cash

5- Convert to a shorter term to pay off the loan more quickly

6- Eliminate Mortgage Insurance (MI)

California Mortgage Refinancing Programs

Some of the options that are presently available in the market and that may fit best into your financial future are:

Fixed Rate Mortgages to enjoy stable monthly payments.

30/15

'Rate and payment fixed as a 30 year term but has a balloon payment at the end of 15 years (note comes due)

15, 20 and 30 year fixed

'The rate is fixed for entire term of the loan offering stability throughout the entire term of the loan

Traditional ARMs (Adjustable Rate Mortgages)

Start with the stability of a fixed-rate mortgage then convert to the flexibility of an ARM.

2/28 ARM

'30 year mortgage with the interest rate fixed for 2 years and then can stay the same or adjust up depending on the market. Offers the lowest interest rate right now. Great for rebuilding your credit while getting the lowest rate available to you.

3/27 ARM

'Same as above but rate is fixed for 3 years and then adjusts.

5/1 and 7/1 ARM

'30 year mortgages with rates fixed for 5 or 7 years. Very common with jumbo size loans (over 337,700).