Archives for July 2015

California refinance rates for homeowners

California refinance rates for current homeowners are still relatively low compared to historical norms.  As of July the 30 year fixed rate has bounced between 3.875%-4.25% (zero points).  Refinance rates continue to be near the 3.75% lows from late spring and well below the early summer rise to the mid 4s.  Californians seeking a low home loan rate should contact 2-4 companies and compare which offer is better.   Even if you only want a 30 year fixed rate mortgage you should also see what the company has to offer on a 20 year or 15 year fixed program.  You might be surprised and find out that a short term mortgage better suits your financial situation.  If you plan on moving in the next 5 years then a 7/1 ARM is a great option – the rate is lower than a 30 year fixed and if you’re moving before the rate adjusts then you avoid any worries about your rate going up.

Depending on your current situation you may also want to examine the difference between a zero cost loan and one with costs (and possibly points).  A zero cost loan is not always the best option; sometimes paying some costs to bring down your rate makes a lot of sense – especially if you can make up those costs within the first 12 months.  California refinance rates should continue to be steady going into August ahead of a possible Fed rate hike in September.

Mortgage loan volume estimates 2015

This morning the existing home sales numbers came in stronger than expected.  2015 has been a good year for home sales as interest rates remain relatively low.  The Mortgage Bankers Association is predicting a strong finish in home sales for 2015.  They expect mortgage loan volume to increase as home loan rates remain low.  They are expecting home loan volume to rise to $801 billion for 2015 which is an upward revision from the $730 billion forecast last month.  Pull through rates are improving as well (the process in which an application is approved and funded) as more home owners look to buy homes with mortgages (rather than all cash purchases).  While purchase application volume has slipped in recent weeks it’s still nearly 20% higher than last year.

Appraisal AVM

What is an appraisal AVM  (Automated Valuation Method)?  An Appraisal AVM is a home valuation service that can provide real estate property valuations using math and public data.  The AVM uses the most recent sales as comparables.  When you refinance your home you may be granted an appraisal waiver.  This is because the AVM home salesmodel that Fannie (or Freddie) is using agrees with the estimated value listed on the application and there are plenty of exact or very similar comps to support it.  Mortgage loans in which the borrower extracts cash are generally not eligible for an appraisal waiver.

If you live in a area in which homes have different square footage from house to house as well as lot sizes you also will have difficulty obtaining an appraisal waiver.  If you are doing a refinance in California (or anywhere in the country) then your interest rate is dependent on the value of your home.  If you have to do an appraisal make sure the home looks like it’s ready to “sell”.  Meaning have the property looking it’s best.  An appraiser is more likely to issue a favorable report if he/she knows the homeowners takes care of the property.  A property that is not well maintained along with a home that is dirty or falling apart will generally receive a lower value.

If you have any questions about an AVM or if you want a quote to refinance your current mortgage or purchase a new home you can contact us directly at 1-800-50-5538.

Riverside foreclosures continue to fall

Foreclosure rates in Riverside continue sliding as the county recovers from the 2007/2008 financial crisis.  Riverside was especially hit hard during and after the downturn however over the last few years they’ve seen prices stabilize with some growth.  Foreclosures were very high for several years post recession however that too has stabilized and we’re seeing less and less over the last 24 months.  Riverside mortgage rates continue to be low and because home values have bounced back we’ve seen many homeowners take advantage of the opportunity to lower their rate and monthly payment.  Home sales have been somewhat strong and it appears that trend may continue.

California refinance rates July 2015

California refinance rates are near 2015 lows.  30 Year fixed, 25 year fixed, 20 year fixed, 15 year fixed and 10 year fixed loans are hovering just above the lows seen in late spring.  Adjustable rates such as the 7/1 ARM loan program and the 5/1 ARM program are also very low and worth considering if the homeowner plans to sell or refinance in the next 5-7 years.  Zero point and zero cost loans are available as California refinance rates settle during the summer months.  Many lenders in California are fighting for market share so you’ll see many lenders advertising only their absolute best rate…and some offering terms that simply don’t exist.  At JB Mortgage Capital, Inc. we provide some of the best California home loan rates in the industry.  Make sure the company you are working with is an Accredited business with the Better Business Bureau and make sure they have an “A+” rating.  JB Mortgage Capital, Inc. has an “A+” rating with the Better Business Bureau and if you are considering a refinance gives a call at 1-800-550-5538.  We offer a no cost and no obligation pre-approval.