California is one of the heavily populated states in the United States having recorded 38,802,500 residents in 2014 [1]. At the present time there are 12,214,549 housing units in California [2]. Real Estate is one of the most active businesses in California employing many people as Brokers, Loan Officers, Escrow Officers, Real Estate Agents, Receptionists as well as Loan Closers. As in the rest of the country, in California, people can get different types of loans when they need it. For example, “Reverse Mortgages” are designed specifically for people at the age of 62 or above. These elderly people can get cash from the equity in their home while they are still living in it [3]. There are “Commercial Loans” for investors who use it for businesses …show more content…
“Investment Property Loans” are used by people who want to do investments in Real Estate with rental property for income. “Refinance” is another type of loan that people apply for to get a better interest rate. When interest rates in the market are going down, many people apply to refinance their real estate with their lender. If their original lender declines their request for the refinance, people “go shopping” to find a lender that will give them the lowest interest rate. During a refinance cycle, the new lender pays off the whole old loan on behalf of the customer and creates a new loan for the customer with a lower interest rate that is prevalent at the time of refinancing. With a lower interest rate, the customer can decrease their monthly payments and save more money, particularly on the amount of interest paid each month on the principle. From this point of view many people in the state of California like to refinance periodically to save thousands of dollars in interest paid. An example of such a time period is the year 2015 when mortgage interest rates have been at historic lows and thousands of households in California have applied for