Property in certain states is viewed as super valuable when seeking a mortgage refinance loan. For example, the size of the economy in the state of California is attractive to lenders that are funding mortgage refinance loans. As home to the core of the entertainment industry, and boasting prosperous agricultural, aerospace, petroleum, computer, and information technology industries, California ranks among the ten largest economies in the world.
California's scenery is diverse including lush landscapes, vast metropolitan areas, gorgeous beaches, and rolling mountains. Property in California includes single family homes, multi-family units, beach homes, mountain homes, luxury estates, downtown lofts, urban living, and some of the most sought after and exclusive gated communities in the country. With a slightly younger population than the rest of the U.S., approximately 37 million residents call California their home.
So from a lender's perspective, in a state where there is a booming economy, a relatively younger demographic, and steady population growth, real estate in California is super valuable, and becoming more and more valuable as the years go by. Because of this trend, they are willing to offer residents a mortgage refinance loan in order to be named the mortgage lender for your property... why?
Well it's like this - the mortgage company technically owns your home until you pay the mortgage loan back, which takes an average of 15-30 years. During that time, your home becomes a great asset as its value increases. It is a lender's desire to have that asset (your home) as a part of their net worth, and not their competitor's. In exchange for the opportunity to serve you, lenders will refinance your loan and offer you the lowest interest rate they are able to offer.
Use their desire to your advantage. You may not know it, but you may live in a state where lenders see real estate as being extra-valuable too. Check on a mortgage refinance in your area. You may find that by refinancing your loan, you can save a significant amount of money. Why give your hard earned money away to a lender that is overcharging you interest, when you simply do not have to?
-Ken S.
© 2009
