9 Benefits of Home-Ownership

Home ownership is the greatest American Dream, is it not? Even in this era of record foreclosures, the percentage of U.S. households that now own, rather than rent, is an all time high. It's not a surprise given several benefits of homeownership. Rent vs. Buy No Matter what you are currently paying for rent, your total cash outlay over a period of several years will probably add up to a much higher total than you may have realized. Compare a renter who pays $1800/month with 5% increase in rent every year and a…continue reading →

Fixed Rate vs Adjustable Rate Mortgage (ARM)

Whether you are buying a new home or planning to refinance, you may be asking the question - ARM vs Fixed mortgage rate - which one is better? When you are trying to make a decision on whether to take an Adjustable Rate Mortgage or a Fixed, you should consider two factors: How long you plan to stay in the property? What is the difference in the interest rate between an ARM & a Fixed? Let me elaborate this: Rates on ARMs are usually lower than fixed rate loans. But the rates are…continue reading →

Documents needed for San Jose First-Time Home Buyer Mortgage Pre-Approval

As a San Jose First-Time Home Buyer you should get a mortgage pre-approval done before you start looking for a house. Pre-approval helps you in 3 ways: It lets you know how much mortgage you can qualify for. This will help you search for homes in the same price range It gives you an estimate of what your total housing payment would be, and If you like a house and would like to make an offer; a "Pre-approval" letter makes your offer stronger. You start the process by completing a loan application. You…continue reading →

San Jose Mortgage Rate Weekly Update

Weekly update on San Jose Mortgage Rates and economy news. The Week That Was: Freddie Mac in its Primary Mortgage Market Survey reported that 30-year fixed-rate mortgage averaged 4.97 percent with an average 0.7 point for the week ending March 4, 2010. Last year at this time, the 30-year FRM averaged 5.15 percent. The 5-year adjustable-rate mortgage (ARM) averaged 4.11 percent this week, with an average 0.6 point, down from last week when it averaged 4.16 percent. A year ago, the 5-year ARM averaged 5.08 percent. Jan personal income was less than expected,…continue reading →

A Video on How Mortgage Interest Rates Move

If you have kept an eye on the mortgage rates recently, you'll know that they have been very volatile. Sometimes, they go up and down several times a day. Have you ever wondered what makes mortgage rates go up and down? Watch this clip which explains the dynamic between bonds and mortgage rates - in simple terms. (Video created by Dustin Hughes and Nick Mallory, www.edgevolution.com and www.thelendingjournal.com) I subscribe to live bond market movements and tweet about it. If you would like to be updated about live mortgage rates follow me on…continue reading →

CalHFA Allocates $700 Million to Assist Homeowners

The California Housing Finance Agency (CalHFA) today announced that it will develop innovative initiatives to use nearly $700 million in new federal funding to help California's neediest homeowners struggling with mortgages payments remain in their homes. In addition to California, the funds will support efforts in Arizona, Florida, Michigan and Nevada. All five states have seen average home prices decline by 20 percent or more. In the early 2007, California's median home price was $484,000 before dropping to a low of $221,000 in April 2009 - a drop of more than 50%. Since…continue reading →

San Jose Real Estate & Mortgage Rates Report 2/21/10

Your weekly dose of San Jose Mortgage Rates, Real Estate Trends and top Economy news. The week that was: Freddie Mac in its Primary Mortgage Market Survey reported that the 30-year fixed-rate mortgage (FRM) averaged 4.93 percent with an average 0.7 point for the week ending February 18, 2010. The 5-year adjustable-rate mortgage (ARM) averaged 4.12 percent this week, with an average 0.5 point. The National Association of Realtors (NAR) reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32…continue reading →

San Jose Mortgages Rates & Market Commentary 02/08/10

Your weekly dose of San Jose Mortgage Rates and Market Commentary. The Week That Was: Freddie Mac in its Primary Mortgage Market Survey reported that the 30-year fixed-rate mortgage averaged 5.01 percent with an average 0.7 point for the week ending February 4, 2010, up from last week when it averaged 4.98 percent. The 5-year adjustable-rate mortgage (ARM) averaged 4.27 percent this week, with an average 0.6 point, up from last week when it averaged 4.25 percent. Pending existing home sales rebounded by 1 percent in December from a record drop in November…continue reading →

Bay Area mortgage rates for 5 Year ARM sinks below 4%

The Mortgage Rates for a 5 Year adjustable rate mortgage (ARM) sank to 4% (and lower in some cases)* yesterday for Bay Area homes. Freddie Mac average rates released on yesterday reported 5 Year ARM at 4.27% at 0.6 points. But the rate improvements later in the day has opened up great opportunities for home owners and First Time Home Buyers. This could be great news if: You already own a home but plan to move out by 2016. You are a First-Time Home buyer and would like to move up in next…continue reading →

New FHA Loan guidelines for San Jose Condominiums

Some major changes went into effect today for FHA loans on San Jose & rest of the Bay Area Condominiums. I. Elimination of Spot Loan Approval Process If a condo project was not approved by FHA, a "spot approval" was allowed just for financing one unit. This process has been eliminated as of today. Now the entire project has to be approved either directly by HUD (process called HRAP) or by a Direct Endorsed Lender (process called DELRAP). With all the liabilities involved around the process most of the direct endorsed lenders would…continue reading →