San Mateo, CA -- (ReleaseWire) -- 11/11/2010 -- It seems like everyone in California is jumping on the mortgage refinancing bandwagon. Maybe you're thinking about it yourself? After all, with rates as low as they are, the promise of lowering your monthly payments, sometimes significantly, is a great attraction for many homeowners.

But before you sign on the dotted line, there are a few things you should know about the way refinancing works so you don’t make a mistake that could wind up costing you big time.

"With refinancing as popular as it is right now, California residents have to be even more careful about shopping for the best loan," says Mike Ervin, a San Mateo, California based mortgage consultant. "Even the most attractive offer can wind up being a disaster once you realize how much the loan is really costing you."

Mike offers these tips when considering refinancing:

* You should get a significantly lower rate for refinancing to make sense. Don't rush to refinance unless it's truly worth your while. If you're working with a mortgage broker rather than going it alone, you can be assured that they're bringing you the best offers out there. If you're going it alone, you'll have to do the legwork for yourself.

* Consolidating unsecured debt with a refinance loan can be a dangerous idea. You may not be in financial trouble now, but if in a few years things change, instead of simply missing a credit card payment or two, you'll now be in danger of losing your home as well.

* Your credit score counts... big time. If you've had credit problems in the past like a bankruptcy, it might make sense to wait a while for your credit score to recover before trying to refinance. Most lenders make it hard for people with less than perfect credit to get the best deals. But, again, if you choose to let an expert like a mortgage broker get involved in the process, they can often find loan options that most homeowners didn’t even know existed - which can save you thousands over the long haul.

* I get a lot of calls from people who are looking to refinance right now. And one of the things people are asking is, should I refinance now or should I wait to see if rates go lower.” It’s a great question – and one that nobody knows the answer to. I don’t know if they going to go down or going to go up. If I knew I would be out floating in the ocean on a huge yacht. Anyone who says they “know” that rates are going to go up or down don’t know what they’re talking about.

The problem with waiting a little longer is you have two out of three chances for doing the WRONG thing, and here’s why. Rates are going to do one of three things. They’re either going to go up or go down or stay the same. So let’s say they go up. Well if they go up and you were waiting, you’ve lost. If they stay the same, you’ve lost again because you lost a couple of months of lower payments where you could have been saving money. So the only way you win is if rates go down.
Might they go down? Maybe. But you only have a one in three chances of that happening. Isn’t it better to bet on the sure thing? If you want to take a chance on something buy a lotto ticket or go to Las Vegas– not rates.

San Mateo, California - based mortgage expert Mike Ervin specializes in providing mortgage information to California residents that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.

Mike Ervin is available for interviews and will welcome all your mortgage related questions.

Call 650-931-0045 for a Free No-Obligation Consultation or visit http://mikeervin.com