Both the Los Angeles Times and the OC Register are reporting that home prices are continuing to rise, as the result of an improving economy. In fact, the median home prices in the six-county region of SoCal, including Los Angeles County, Orange County, San Bernardino County, and Riverside County have all risen at least 7.5% over last year.
Rising home prices mean that homeowners who have made their mortgage payments on time overtime have undoubtedly built up equity, making it a prime time to take advantage of a cash-out refinance in SoCal. For example, in Orange County, CA the median home price has now surpassed $700,000, so if you've owned a home in OC for a while, you may be well positioned to take advantage of your equity.
How do you know if a Cash-Out Refinance in SoCal is right for you?
First, it depends upon whether you need or want access to that equity. After all, a cash-out refinance is an altogether new mortgage that takes the place of your current mortgage. However, instead of merely refinancing your current mortgage, you can refinance your loan for more than you owe, using the equity(cash) you've earned for other expenditures.
Homeowners in SoCal frequently use Cash-Out Refinances to:
- Consolidate other debt to reduce interest payments
- Purchase an investment property
- Buy a 2nd Home
- Diversify your portfolio/save for retirement
- Offset College Costs
- Home Renovations
It is important that homeowners in Los Angeles, Orange County, San Diego County, Riverside County, and San Bernardino County realize that a cash-out refinance will result in your mortgage balance increasing. In other words, a cash-out refinance should not be mistaken for "free money." However, given today's low interest rates, a cash-out refinance can be a great way to borrow money in Southern California at a very low rate.
Another aspect to consider when determining if using the equity in your SoCal home through a cash out refinance is right for you, is that there will be some costs associated with refinancing your current mortgage, as there are will all refinances.
Finally, remember to talk with a top-reviewed, experienced SoCal mortgage broker before making any big decisions. The best mortgage brokers in OC will help you to explore all options to make sure that a cash-out refinance is an appropriate mortgage loan for your unique situation.
At Summit Lending, we are proud to be a Huntington Beach based mortgage broker and direct with all 5-star reviews on Yelp! and Facebook. Our experienced team can offer fast approvals, and fast loan closings for first time homebuyers, experienced homebuyers, and homeowners looking to refinance. Contact Summit Lending today, to learn more about the various home loan options available to you in Orange County, Riverside County, San Bernardino County, Ventura County, San Diego County, or Los Angeles County today.
Based in Orange County, California with offices throughout Southern California, Summit Lending can be reached online, on Facebook, or via phone at 888-451-9006. As the best reviewed home loan lender mortgage broker in Orange County, Summit Lending's President Lisa Alley can be heard on KFI AM-640 radio each week.