Month: March 2017

Longer term mortgage rate loan program

Loan Production Prior To 2008:

Before 2008 longer term mortgage rate loan programs were starting to make their way into mainstream loan production. 40 year fixed rate mortgage loan programs became popular and wide spread in California and in other parts of the country. Homeowner’s were looking for the opportunity to buy a larger house so the mortgage Family in front of their homeindustry created this new loan product. The mortgage rate was fixed however instead of a 15, 20 or 30 year term; it was now 40 years. At first the rate was not much higher than a 30 year fixed rate mortgage; so the borrower received the benefit of both a fixed rate and a lower payment when compared to other mortgage rate products. After the market collapsed; the 40 year mortgage loan product went away and California refinance and purchase loans went back to the previous normal of 15, 20 and 30 year terms.

40 Year Mortgage:

Recently we’ve heard talk of bringing back the 40 or possible a 50 year fixed rate mortgage. Longer term mortgage rate loan programs might offer some benefits in terms of allowing the buyer to purchase at a higher price point however there are some serious downsides. Moving to a 40 or even 50 year mortgage essentially means you have no plans to pay off the loan; and paying off a mortgage is a great way to build wealth.

Long Term Costs:Mortgage Pre-qualify

Also longer term mortgages carry a much higher long term cost for homeowners.  The interest rate may not be much lower than a 30 year fixed and you’ll be paying very little towards the principal the first 10-15 years of the loan. Do we need to create loan program so that people can spend more money or are the current suite of mortgage rate loan programs adequate? I think the industry should be conservative and stick with the normal mortgage rate loan programs of 15, 20 and 30 year fixed rates.  If you would like a quote for a new home loan; please contact us directly at 1-800-550-5538.

Current Mortgage Rates:

If you are looking for current mortgage rates we have you covered on our current mortgage rates page. We’ll not only keep you up-to-date with where mortgage rates are at but also cover important bond market information and general economic news that may influence mortgage rates.

California Mortgage Rate Reset

Rate Adjustment:

Is your California mortgage rate about to reset after a 5, 7 or 10 year fixed rate period?  If so don’t worry; thousands of Californians are in the same situation every year.  Adjustable rate mortgages are a mortgage product in which the rate adjusts or “resets” after a fixed period time.  That’s different from a fixed rate mortgage Mortgage interest ratewhich has a fixed rate during the entire life of the loan.  As you know you obtained a break on the rate for going with an adjustable California mortgage rate when you purchased or refinanced your home.  But now you’re facing a mortgage rate reset; so here are some options.

Your Rate Might Not Go Up:

When you obtained your current mortgage, California mortgage rates were probably super attractive considering the 30 year low we’ve seen since 2008.  But now you might be looking at a reset so does that mean you need to refinance?  Nope; you actually might not see a bump in rate at all.  The key thing with a California mortgage rate reset it to know your margin and your index.  Add those two together and that will be your reset rate for the next year (if you’re rate adjusts every year).  Many homeowners chose to stick with the mortgage they have for many reasons especially if the new mortgage rate is attractive.

JB Mortgage Capital, Inc.:Home Grey

Next option is to do a California refinance with a new fixed rate mortgage or a new adjustable rate mortgage.  Make sure you obtain 2-4 quotes and don’t forget to contact JB Mortgage Capital, Inc. at 1-800-550-5538 for a no obligation and no cost quote.  Another option is to sell the property if you are looking to upgrade to a new home or downsize to something smaller.

Current Mortgage Rates:

If you are looking for current mortgage rates we have you covered on our current mortgage rates page. We’ll not only keep you up-to-date with where mortgage rates are at but also cover important bond market information and general economic news that may influence mortgage rates.

Mortgage Program Day 1 Certainty Fannie Mae

Low Mortgage Rates At JBMCDay 1 To Reduce Documentation:

Fannie Mae, the mortgage giant backed by the federal government, has many programs that allow homeowners to refinance their current fixed rate or adjustable rate mortgage and many mortgage programs that allow buyers to obtain a great mortgage loan to buy that dream home. At JB Mortgage Capital, Inc. we offer many of these Fannie Mae mortgage refinance and purchase options. One new mortgage loan program is “Day 1 Certainty”. Introduced in 2017; the Day 1 Certainty mortgage loan program is to reduce the amount of paper a borrower for a new mortgage has to provide; speed up the approval process and provide a clearer picture on appraisal waivers.

A Smoother Process:

We all know; this sounds great but a low mortgage rate is essential to the mortgage loan process; so a question we’ve received is-will this cause an increase in the mortgage rate; and the answer is no.  10 year fixed rate mortgages, 15 year fixed rate mortgages, 20 year fixed rate mortgages and 30 year fixed rate mortgages are eligible under the Day 1 Certainty loan program.  As many homeowner’s know; the mortgage process since 2008 has been a bit cumbersome so for those that qualify for the Day 1 Certainty program this is an opportunity to make the loan process a bit smoother.  And as mentioned you can still get the best low rate mortgages under the program and Fannie Mae does not charge any additional costs.  Some additional great news is that some borrowers will avoid income verification with the IRS prior to approval and around tax time that can be a huge help.

JB Mortgage Capital, Inc.:Personal Service

We at JB Mortgage Capital, Inc. work hard to make sure we provide every option possible to our clients. That’s why we offer many fixed rate mortgage and adjustable rate mortgage programs for both refinance and the purchase of that dream home. Please contact us today with any questions you may have or if you’re interested in a no obligation/no cost quote just let us know.  Call 1-800-550-5538.