Mortgage Rates Reach A Point Of No Return

The month of May, 2013 saw the steepest one month hike in mortgage rates in last 5 years. In the last five weeks, 30 year fixed mortgage rates have climbed 0.50% to 0.75%. Interest rates for virtually all the loan programs have increased substantially. Freddie Mac in its latest weekly survey reported that the fixed mortgage rates increased for the 5th week in a row. In the May 2, 2013 survey the 30 Year Fixed mortgage rate was reported at 3.35% with 0.7 points; last week that increased to 3.91% with 0.7 points.…continue reading →

Buying Your First Home in California

How much you can comfortably afford? Beyond pre-qualification, the pre-approval process is the best way to determine the number that's right for you. More than just a conversation, pre-approval entails full documentation and a credit check. The comprehensive review of all this information will help to determine early, what is truly available to you. Better still is that there aren't any hurdles left to cross before you can buy a home in California as this process will identify them long before it costs you time and money later. How much cash do you…continue reading →

Mortgage Rates Rise Sharply On Better Economic News

Its been a bad month for mortgage rates. In 3 weeks the mortgage rates are up 0.25% to 0.375%. Freddie Mac's weekly survey on April 25th, 2013 reported the 30 Year Fixed at 3.35% with 0.7 points. May 16th survey reported 3.51% with 0.7 points. A quick look on Bank Rate today shows 3.66%. All these rates are for conforming mortgages under $417,000. Loans over that limit are typically 0.25% higher in rate. Get a Live Rate Quote Mortgage rates are directly impacted by how mortgage backed securities (MBS) trade on Wall Street.…continue reading →

Then and Now – An Amazing Yet True Comparison of Mortgage Payments

These figures are illustrations only. Prices are based on U.S median average sales prices, rates are reflective of a 30 year fixed rate loan for 1981 and early in 2013. Principal and Interest payments are based on an 80% loan to value, taxes are based on a factor of 1.5% of the sales price and insurance is based on a cost of 3$ per $1,000 of loan amount. Actual current rates, taxes, insurance, etc , can vary at any time. Amazingly, you can purchase a median priced home today for a payment that…continue reading →

California HARP Has Been Extended Till 2015 by Fannie Mae and Freddie Mac

The Federal Housing Finance Agency (FHFA) today directed Fannie Mae and Freddie Mac to extend the California Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013. More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,said FHFA Acting Director Edward J. DeMarco. We are extending the program so more underwater borrowers can benefit from lower interest rates. Get a Rate Quote for HARP HARP is designed to allow borrowers who owe more than their…continue reading →

California Mortgage Rates Trend Lower After Rising for Several Weeks

The first Friday of every month is almost always one of shock and awe; the release of the monthly employment data is rarely a calm event. The March data released last Friday did disappoint in terms of surprise. The news improved Mortgage Backed Securities (MBS) price by 40 basis points (bps) on Friday and 122 bps for the week. MBS usually goes up in price on a weak economy news. The increase in MBS has an inverse effect on mortgage rates i.e. when MBS prices go up, mortgage rates go down. Get a…continue reading →

How to Estimate a Property’s True Market Value

One of the most common mistakes that many new real estate investors and first-time home buyers make is overestimating a property's true market value. The result is overestimating its resale value or rental income potential, which can have a negative effect on any potential profits in the future. Loss of Profits A good example of this is when someone buys a foreclosed house or fixer-upper with the intent of repairing it and reselling for a quick and easy profit. However, in all too many cases, the buyers find out the hard way that…continue reading →

Can HARP 3 Soon Become A Reality For California Homeowners? #MyRefi

Its been a stop-and-go for the new and improved┬áHome Affordable Refinancing Program 3.0 (also called HARP 3). Towards of the end of last year the launch seemed to have gained momentum. But nothing seem to have happened in last month or so. Nearly 1.8 million borrowers have taken advantage of the Home Affordable Refinancing Program (HARP, also called HARP 2) for mortgages backed by government-owned Fannie Mae and Freddie Mac since it began in 2009. The new plan loosely called HARP 3 would create a similar avenue for an estimated 930,000 borrowers whose…continue reading →

Employment News Takes Mortgage Rates To Highest Levels In Over a Year

After weeks of worsening rates, it seemed California mortgage rates were getting stable. But the employment report and some other news last week delivered a knockout punch to any hope of rates getting better. Mortgage rates are directly impacted by how mortgage backed securities(MBS) are traded on wall street. If MBS fall in price, the rates go up. On Monday and Tuesday the MBS fell by 9 basis points (bps) each. Thats only a minor impact on rates. But then on Wednesday and Thursday it went down by a whopping 66 bps. If…continue reading →

Flames, Floods and Fury: Preparing Your Financial Records for the Unexpected

It is quite clear from many recent events that Mother Nature is more than capable of springing some nasty surprises with the weather which can cause terrible devastation and damage, not to mention some events that can be equally as damaging that are manmade. In times of upheaval and sometimes extreme difficulties, we want to get back to normal as quickly as possible and getting your financial paperwork in order is a sure fire way of speeding up the recovery process. Check your insurance details - Depending on the scale or severity of…continue reading →