There's a lot of talk about getting a California refinance at the start of 2008. Now is the time to get a refi while the rates have settled to a low of 5.69% for a 30-year FRM. A fixed rate 15-year loan has descended to 5.21%. This explains the rise of refinance applications, and if you're skeptic about the whole thing, you'll forfeit your chance to live under the bright California sun.

Mad Rush To California

Applicants eager for a California refinance are taking advantage of the rates for the mid to upper 5% range. The buzz is going around that most of the loans don't require additional costs. Home experts exclaim that they've never been busy at the start of the year and the resurgence of refinancing loans augurs well for the housing economy. Take this chance now, while the going is good.

Companies are now offering borrowers with loans of fixed rates in the 6.5% bracket, a golden chance to refinance to a flat 6% loan without charging for origination fees. All you have to do is add a less than a quarter (1.4375%) to your traditional 30-year loan rate. This will mean more savings because there are no costs to switch your interest rate to a lower 6%. But not all can qualify for this bonanza, though.

Stricter underwriting controls have been set in place to reinforce stringent appraisal accuracy, borrower's equity, and the usual credit scores. In areas affected with declining prices, many homeowners might be surprised to discover that their equity is not sufficient to get them refinancing loans. But despite this setback, those qualified for California refinance loans are euphoric about the cutback in interest rates.

Getting Ready for Your Refinance

Get ready for your relocation to California. Refinance experts are urging all those interested in getting a refi to do it now. So start calling companies and compare offers, rates, and other perks.

While you're at it, you might as well make sure that your mortgage papers are intact and complete. You can't waste time. There are hundreds out there poised for their flight to California with families in tow the moment they close the deal.

At this point, your credit score will make or break you. As early as the second semester of 2007, experts were advising those who were going to join the ranks of California refinance applicants to repair their credit scores as mortgage companies would be doing more credit history reviews. True to their word, mortgage companies are stricter with the requirements when it comes to credit scores.

Some mortgage companies, though, are not concerned about the credit score. Rather, they want to know how your paycheck is scored and quartered. They want to see if there's money left over after taxes and housing. If there is nothing sufficient left for a family to live on, the application is denied, never mind how much you earn or what your credit score is precariously hanging onto. Your existing loans should not go over 50% of your monthly take home pay, too. Your income tax returns and W2s or 1099s will be verified to crosscheck the veracity of your information.

Knowing all these variations for pre-qualification can help you evaluate your chances. But still, there are California refinance companies that can provide other options that will make them stay in business and let you keep your home. While the interest rates are low, grab it.