There are many reasons to refinance a mortgage in California. You can get a lower interest rate, shorten the life of your loan or even get some cash for the equity you have in your home.

It's not hard to find lenders that offer mortgage refinancing in California — they're located all over the state. It's important, however, to evaluate your needs in order to choose the loan that's right for you.

1. Think about doing a basic, traditional refinance in CA. You can trim down your monthly payment or increase it to shave a few years off the life of your loan at a lower interest rate.

2. Consider a cash-out mortgage refinance in California. You can use the money for home improvement projects, paying off your car loans or consolidating high-interest credit card balances.

3. Research the current refinance rates in California. In order to know if you're getting the best rate from your lender, you have to have something to compare it to.

Action Steps
The best contacts and resources to help you get it done

Do a California refi to get a lower rate or pay off your loan more quickly

Refinancing is a good idea for many homeowners who can't afford their mortgage due to a high interest rate and the resulting high monthly payment. Some homeowners have had an adjustable rate mortgage adjust up to a rate that's too high for them to afford. You can also consider taking out a lower-interest 15- or 20-year loan if you want to own your home faster (and can afford the increased monthly payment).

I recommend: Pay off your loan faster with an accelerated refinance option from Saratoga BanCorp. If you have bad credit, Online California Mortgages can help you out.

Find lenders who do cash-out mortgage refinancing in CA

You can get the money based on the equity you've built in your home by doing a cash-out refi. There are myriad options for what you can do with some extra cash: You can remodel your home, pay off debt or use it to purchase a big-ticket item you've had your eye on.

I recommend: Take a look at the options available for your cash-out refi at Empire Home Loan Corporation. See if a refinance through First Security Lending is right for you.

Investigate refinance rates for California homeowners

You should know what you're talking about when you go to see a mortgage broker or lender. Some lenders are predatory and try to take advantage of their customers: Do your homework and know what kind of rates you should be offered before applying for a refinance.

I recommend: Check out MortgageLoan.com to find national lenders offering refinances in California. Compare the rates of several California companies at Mortgage101.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Quite a few refinancing companies in California offer adjustable rate mortgages, or ARMs. These loans have gotten some people into trouble because they couldn't afford their monthly payment when the rate adjusted. Think carefully before signing on for one of these loans.