Everything California

Debt To Income Ratio Limits Raised to 50%

Higher Deb To Income Ration Now Eligible:

On July 29th, 2017 the door to a new mortgage will be opened for thousands of potential homeowners and current homeowners that have a Debt-To-Income (DTI) ratio above 45%. The mortgage giant Fannie Mae will be making an adjustment to its Automated Underwriting System (AUS) so that those with a 45%-50% DTI will JB Mortgage Capital, Inc.be approved for a new mortgage. By some estimates this will open the door to nearly 100,000 new loans for lenders to process which is good news since the industry has had a slow start to 2017.

More Good News:

Additional good news is that it applies to loan applications with Loan To Value ratios above 80% which will really help those trying to purchase a home that only have a small down payment (such as 5% – 10%).  Mortgage rates are not directly addressed in this DTI change and it appears someone with a 45% DTI potentially have the same rate as someone with a 50% DTI.

The good news is not absent of concerns as a higher DTI means the loan applicant is devoting a high percentage of their income towards their home.  According to Fannie Mae they believe the risk of default does not increase that much between a DTI of 45% and one with a DTI of 50%.  Obviously the increase will be closely monitored and if proves to be too risky then it wouldn’t be surprising to see Fannie Mae revers course in 2018-2019. However if the default risk remains low it might open the door for Fannie Mae to try additional actions and expand opportunities for lenders even further.

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 Pre-Approval

Buying A Home:

If you are looking to buy your first home, looking to upgrade from your current home or buying a new rental property it’s always a great idea to get a pre-approval done by a knowledgeable loan officer with years of experience. In fact most sellers require that a prospective buyer have a pre-approval completed prior to making an offer. Below is Home For Saleinformation that will help you navigate the process to ensure you have the knowledge needed to make it a more smooth and efficient process.

The Pre-Approval Process:

So what does is mean to get a pre-approval done and what is the process? Both excellent questions with fairly simple answers. Getting a pre-approval done means a loan officer has reviewed your credit report, income and assets to see if you qualify for a loan. At that time the loan officer will provide a detailed quote however it’s important to know that it could change since the terms are not locked in. Especially if you go weeks or months after the initial pre-approval before finding a home. The reason is mortgage rates and terms change daily until you find a home and lock in your rate/terms.

The Necessary Documentation:Home Buyers

What is the process like? First step is to gather your income and asset documentation. If you are a W-2 employee that means getting your two most recent W-2’s and your two most recent pay stubs (if you are paid weekly then it’s your four most recent pay stubs). If you are self employed it means gathering your two most recent years of tax returns (personal and business). In addition to your asset documentation you also need your asset documentation (the account in which your down payment will come from). If you’re down payment is being gifted to you; you still may need to show some liquid assets so you should still gather those statements (covering the two most recent months).

Starting The Process:

Second step is to call a loan officer and let them know you’d like to pre-approved. You’ll complete an application (over the phone it generally takes 10 minutes) and send over your documentation. From there it’s up to he loan officer to review everything and determine if you Mortgage Pre-qualifyqualify for a loan and how much house you can afford.

“How Long Does It Take?”:

Generally it takes a loan officer 24-48 hours to review everything and determine if he/she can issue a pre-approval letter. Once that is completed you’re ready to go find a property!  One thing that is very important during the process is that it’s essential you ask questions to make sure you understand everything; especially if you are first time home buyer.

JB Mortgage Capital, Inc.

If you would like to get pre-approved with us you can contact us by way of the sidebar “contact us here” request or call us directly at 1-800-550-5538.  We offer industry low mortgage rates, top notch customer service and we’ll beA+ Rating happy to answer any questions you have. Loan Officer Kevin O’Connor has 14 years of experience, a five star rating on Zillow and we have an A+ Rating with the Better Business Bureau.

Best Mortgage Lenders For Refinancing

Everyone Is Different:

So who are the best mortgage lenders for refinancing?  To determine that we need to establish what is important to a homeowner when he/she looks to refinance their current mortgage.  For some people it’s all about the mortgage rate; for others it’s more about the service and then there are others that want both a great mortgage rate and great customer service.  Everyone is different in terms of what’s important to them but we can come up with some important guidelines to help Low Mortgage Rates at JBMCyou find the best mortgage lenders out there.

Independent Research:

Keep in mind there is a lot of independent research you can do with the Better Business Bureau (BBB), the Business Consumers Alliance (BCA), the Nationwide Mortgage Licensing System (NMLS) and the California Bureau of Real Estate (CalBRE).  Like finding the best mortgage rates; finding the best mortgage companies to work with takes a time and effort.

Five Important Questions To Ask:

Here are five important questions I suggest a homeowner ask and get answers to so that they can determine who the best mortgage lenders are for refinancing:

  1. Does the mortgage company have a top rating with the Better Business Bureau (BBB), a top rating with the Business Consumers Alliance (BCA) or similar consumer focused industry group?
  2. Does the mortgage company offer a wide variety of programs including both fixed rate mortgages and adjustable rate mortgages?
  3. Does the loan officer that provides the quote have a long-well established track record in the mortgage industry that you can independently verify withFirst Time Home Buyer Home Nationwide Mortgage Licensing System NMLS?
  4. Does the loan officer take the time to clear explain the quote and answer any questions you have?
  5. The quote that’s provided-is it competitive and are the fees low.

Additional Considerations:

There are other criteria to add to that list for different circumstances; like someone with bad credit will probably want to find a mortgage company for people with bad credit  and a loan officer that is not only going to help them obtain a great mortgage but also provide some education on how to repair/rebuild the homeowners credit.  A homeowner looking to do a streamline FHA refinance will probably want to find a loan officer that offers that loan program and has experience closing FHA loans.  How about someone who wants to refinance a rental property? This person needs to find a mortgage company and a loan officer with a lot of experience in financing non-owner occupied properties.

BBB A+ AccreditedJB Mortgage Capital, Inc.

Whatever your situation is take the time to do a little research to make sure you are working with a reputable mortgage company.  We would love the opportunity to earn your business so if you’re in the market to refinance your current mortgage please contact us directly at 1-800-550-5538.  We have a top rating with the BBB and BCA, a wide variety of loan programs and industry low rates.  With many years of experience we also have learned what it takes to provide the best possible customer service to each and every client.

Previous Post On Koloans:

Here is part of a previous post on Koloans that could end up saving you money: Below is a list of key mortgage terms everyone should know and understand before moving forward with a new mortgage.  To help obtain the lowest interest rate on your next California mortgage loan be sure to take the time to understand mortgage terminology. Refinance or purchase; it’s important to understand the various terms used before, during and after the process. A borrower with a good understanding of mortgage terms will be in a better position to secure a low interest rate mortgage. For the most up-to-date information on current mortgage rates please be sure to visit our mortgage rates page.

Who Has The Lowest Mortgage Rates In California?

The Simple Fact:

Have you ever asked a family member, friend or even a realtor this question? I would guess most home buyers or homeowners looking to refinance their mortgage have at one point in time or another asked someone “Who has the lowest mortgage rates in California?”. Here is a simple fact of life in the mortgage industry: no one lender has the lowest mortgage rate day in and day out. Mortgage rates change daily; sometimes more than once a day, and so it’s impossible for a lender to say they always have the lowest mortgage interest ratemortgage rates in California. Some days, weeks or even months a lender will be really competitive; in fact they are usually the lowest however at some point that will adjust otherwise the lender would have too much business. To slow down business they raise their mortgage rates a bit to slow down the number of applications and when they get caught up they then will look to attract new business.

Getting your Quotes:

The best mortgage rates in California are not always offered by the same lender so it’s important to obtain 2-4 quotes from reputable mortgage companies (this is super important). I’ve never understood someone who thinks a quote from a lender with a C or lower rating from the Better Business Bureau is a legitimate quote.  If a lender does not have at least a B (at a bare minimum) I think you’re wasting your time. There’s a reason their rating is so low and it’s best to work with higher rated companies that are making legitimate offers.

Not All Quotes Are The Same:Mortgage Pre-qualify

Keep in mind that not all rate quotes are the same, an important factor is cost. A 4.00% 30 year fixed with $1,000 total costs (for everything) is better than a 3.75% rates with $10,000 in total closing costs.  So when you get a quote find out the “total costs for everything”. I am a big fan of no or low cost mortgage rates for borrowers that qualify (when it makes sense).  Reason is if you were to refinance again or sell the property before you recoup the costs associated with the transaction then the costs you’ve paid becomes wasted money.  However not everyone and not every transaction qualifies for a no cost mortgage rate.  Even if you have perfect everything but your loan amount is less than 200k it’s going to be difficult to get a no cost rate that makes sense. If you are paying costs to do a transaction don’t think it’s a total loss because there are many situations in which paying costs make sense.

JB Mortgage Capital, Inc.

If you have any questions or would like a quote please be sure to contact us directly at 1-800-550-5538 for a no cost – no obligation quote. We offer industry low rates and top notch customer service. We have many A+ Ratingdifferent types of loan programs including both fixed rate mortgage options as well as adjustable rate mortgage options. We have a top rating with the Better Business Bureau and the Business Consumers Alliance. We utilize the latest technology and have one-on-one personal service. Loan Officer Kevin O’Connor has over 14 years of experience and will be happy to answer your questions and provide solutions for your home mortgage needs.

California refinance summer 2017

Best Mortgage Rates of the Year:

It’s summer 2017 and we’re seeing some of the best mortgage rates this year.  Do you live in California and are you looking to refinance your current mortgage? Heading into the summer mortgage rates have been very attractive compared to the first three months of 2017.  As you may remember mortgage rates really moved Home Kitchenhigher in the fall/winter of 2016 and they remained elevated during the first quarter of 2016.

The Election:

What caused mortgage rates to move up in November 2016? The election.  Investors, specifically bond investors, were instantly worried that inflation was going to come on strong which is bad for bonds and mortgage rates.  As we head into the Summer of 2017 we’ve yet to see any strong inflation; in fact we’re starting to see some signs of “possible” softening of the economy and lower inflation expectations.  Because of that, and other factors, mortgage rates have improved since March and heading into the Summer of 2017 are at their best levels of the year.  Low California home loan rates are expected to be around for the foreseeable future however if we see evidence of inflation creeping back in to the economy that could change quickly.

Lower Mortgage Rate:Low Mortgage Rates at JBMC

Some homeowners will refinance this summer to get a lower mortgage rate while others are pursuing a refinance to obtain cash out to pay for home improvements, educational expenses or possible medical expenses.  When you start to look into your refinance take the time to determine if the new mortgage makes sense and improves upon your current financial situation of if the mortgage satisfies an important need (ie you need a new roof).

Keep an open mind:

Be open to new ideas and new programs that may benefit you more than what you originally thinking.  One example of this is considering an adjustable rate mortgage (where the rate is fixed for 5 or 7 years) if you’re planing on moving in the next 5 years.  If you’re going to move in the next few years but need to do a cash out loan to pay for a new roof – it may not make sense to get a new 30 year fixed rate mortgage when you can get a lower rate on an adjustable rate mortgage that has a fixed rate period of 5 or 7 years.  Heading into the summer –  Are 2017 mortgage rates good?  Absolutely considering not too long ago the market was about .50% higher.

A+ RatingIf you have any questions about doing a refinance this summer please be sure to 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.

FHA Mortgage Rates In California

FHA Has Fixed and Adjustable Rate Mortgages:

Through various mortgage companies the Federal Housing Administration (FHA) offers low mortgage rates for those with less than perfect credit and/or those with loan Home For Saledown payments. Before the 2008 mortgage crisis FHA mortgages in California were a small percentage of the market. Currently FHA is a major player as homeowners and buyers look for alternatives to the traditional conforming loans from Fannie Mae. There are both fixed rate mortgages and adjustable rate mortgages offered by FHA and generally speaking the30 year fixed rate loan program is the most popular.

Brokers, Lenders and Banks:

Keep in mind that the Federal Housing Administration does not offer mortgage loans directly to consumers; the programs are offered by brokers, lenders and banks. What the FHA does is offer insurance to these companies when they underwrite a loan to FHA standards and guidelines. Some brokers, lenders and banks underwrite to exact FHA guidelines and others underwrite to a slightly higher standard than what FHA requires.

FHA Requirements:

That leads us to this important question; what does the FHA require? The simple is not much compared to underwriting standards 30-40 years ago. That being said it’s not as simple as just signing your name to the mortgage note and then you’re done. Those that don’t currently have a FHA mortgage still need to prove income and qualify basedLow Mortgage Rates at JBMC on a debt to income ratio however the standards are lower compared to a conventional loan. Also if you’re purchasing a home; you only need 3.5% of the purchase price as a down payment. That is great news for first time home buyers that don’t have a large down payment. Also if you have less than perfect credit; FHA is a great way to go. Reason being is that its easier to qualify for a new mortgage under FHA guidelines if you have less than perfect credit.

Considerations For FHA Loans:

So if you have one, some or all of the following you should consider a FHA loan:

  • Less than perfect credit
  • Little to no credit
  • Low down payment
  • High Debt to Income ratio

Downsides To The FHA Program:

What are the downsides of FHA? A couple of things to keep in mind: Mortgage Insurance is added to the monthly payment. Mortgage insurance is paid by you in case the loan defaults and you can’t get rid of it unless you refinance to a different loan or sell the house. FHA also A+ Ratingcharges an upfront Mortgage Insurance Premium fee (MIP) of 1.75% however this can be rolled into the interest rate (so you don’t pay it directly). The fee is 1.75% of the loan amount which is either added to the loan OR your interest rate is increased just a bit to cover the fee. Lastly; you have to impound your property taxes and property insurance with your mortgage payment when you do a FHA loan. If you prefer to do this; than it’s obviously not an issue.

JB Mortgage Capital, Inc.:

If you would like a quote on a fixed rate or adjustable rate FHA mortgage quote please be sure to give us a call at 1-800-550-5538. We offer industry low mortgage rates, and we have a top rating with the Better Business Bureau and the Business Consumers Alliance.

Getting A Mortgage In California

The Process:

Are you looking to refinance your current mortgage or are you looking to buy a new home in California? Getting a mortgage in California doesn’t have to be hard and if you’re prepared the process can be fairly simple and straightforward. We work with clients all throughout California, and those wishing to move to California, can look to us JB Mortgage Capital, Inc.to obtain a low rate mortgage with no junk fees.

The First Step:

One of the basic things you’ll need to know when getting a mortgage in California is that there are two general type of mortgages; fixed rate mortgages and adjustable rate mortgages. Fixed rate mortgages have their rate fixed (never changes) for the entire life of the loan. Adjustable rate mortgages are loan where the rate is fixed only for a limited time (generally 5 or 7 years) and after that the rate will adjust (usually once every year) until the loan is paid off. The adjustable rate, after the fixed period, is comprised of two things: a margin and an index. The margin generally stays the same however the index usually changes from day to day or month to month. Adding the margin to the index will give you your interest rate.

The Next Step:

A second important detail to getting a mortgage is to know your credit. Have you missed any payments? Do you max out your credit cards each month or do you only use them sometimes? Understanding your credit is important because this is one of the biggest factors that determines your mortgage rate. There are various sites that offer a free credit report; but not all of them supply a credit score unless you pay a little bit extra for this. If you do pay for the credit score part please know that the websites rating may be different than the actual credit score used by lenders.

An Important Detail:Home Kitchen

A third important detail is know your income. It doesn’t have to be exact to the penny when you call for quotes but the number you communicate should be fairly close. So if you make $54,954 per year you can probably round that off to $54,000 or to $55,000. If you make a lot more than that your margin can be a bit wider. Self employed people need to know their net income after expenses while W-2 employees need their gross income (since generally they don’t have business expenses).

JB Mortgage Capital, Inc.:

If you are interested in getting a new mortgage in California please be sure to contact us directly at 1-800-550-5538. We will be happy to answer any questions you have and/or go into further detail about what it takes to get a new mortgage. We are a California mortgage company that offers industry low mortgage rates and top notch customer service. We have a top rating with the Bette Business Bureau and the Business Consumers Alliance. When you work with us you’ll work with First Time Home Buyers In Californiaone loan officer from the first call to the very end. Unlike most lenders we do no pass you off to another loan officer or another process during your transaction. We’re committed to a smooth transaction so that is why your loan officer will focus on you and be your point of contact during the entire transaction.

Connect with us on Social Media:

INSTAGRAM: JB Mortgage Capital, Inc.
Instagram is mainly a photo and video sharing social media site that is owned by Facebook. Instagram’s popularity over the years has increased significantly especially among young adults and famous people. It was launched in October, 2010.

REDDIT: Loan Officer Kevin O’Connor
Reddit is perhaps the most well known news aggregation, and discussion social media website on the web today. Members post news items, thoughts and questions andA+ Rating these posts are voted up or down. More popular posts are more widely seen by Reddit members.

BEHANCE: Loan Officer Kevin O’Connor
BeHance is a group of websites on the web that provides promotional elements to it’s members with posts focused sharing an online portfolio.

Refinance My Mortgage In California

Where To Begin:

If current mortgage rates are lower than what you already have, then you’ll probably want to look into refinancing. Where do you begin? What is the first step to refinancing your current mortgage?  There are so many things associated with a mortgage transaction: fixed rate mortgages, adjustable rate mortgages, points, costs, appraisal and the list goes on for things you need to know if you want to refinance your home. Let’s keep it simple and start with the basics; first confirm what type of loan you have and what Low Mortgage Rates At JBMCyour current interest rate is on that loan.

Your Documentation:

Also gather some of your income documentation so that you can accurately give the loan officer the amount of your annual income. So if you’re an employee grab your W-2 from the most recent year and if your self employed grab your most recently filed tax return. This way when you call for a rate quote you have an idea of what the improvement will be from your current loan.

An Example:

The next step is to keep an open mind to something you may not have considered before when you obtained your last mortgage. For example; some people say “it never makes sense to refinance unless you lower your interest rate at least 1 percentage point”…..well that simply is not true. Let’s say you are 4 years in on a 30 year fixed rate mortgage at 4.5o%. And let’s say a 30 year fixed rate mortgage rate is at 3.875% (for this example) with zero points. I would agree; probably doesn’t make much sense to go to another 30 year mortgage unless you are in need of some cash out to upgrade the home or any other possible purpose.

Lower Payment Is Important:Spacious Family Room In Home

Another reason might be you really need a lower payment on the home and even a small drop in payment will help. Let’s change the term from a 30 year fixed mortgage to a 20 year fixed mortgage. I know you, like most people, just said to yourself….I can’t afford a 20 year mortgage. Try not to do that because you might find out that you can. So for this example a 20 year fixed rate is at 3.625% – and at that rate this is an attractive loan you should consider even though your interest rate did not drop by a full percentage point. The reason it’s attractive? You’ll take off 6 years of your current payment plan and payoff the home much faster while saving tens of thousands of dollars by doing so.

Don’t Miss Out:

However if you followed the previous mentioned “rule” then you would have missed out on this huge opportunity to be mortgage free sooner. I bring this up because many people don’t bother to explore their options when it comes to doing a refinance so they miss out on major opportunities. So keep an open mind when you go to refinance your current mortgage and ask the Loan Officer to give you some suggestions about other options you may not be thinking of. The best California mortgage rates are sometimes on loans you’ve never considered so be sure to explore all opportunities.

Only Work With Top Rated Mortgage Companies:

Keeping an open mind locate 2 – 4 lenders you want to get a quote from. Make sure they have a top rating with the Better Business Bureau and don’t hesitate to ask lots of questions. If the loan officer is not fully answering your questions or only gives limited details than that is a huge red flag. You should work with a loan officer that will take the time to answer your questions about your refinance and you should receive detailed answers. Once you have your quotes sit down and compare the quotes to your current loan; only you can make that final decision if it makes sense to refinance your current mortgage.

JB Mortgage Capital, Inc.

When you’re ready to refinance your current mortgage please be sure to contact us directly for a no cost – no obligation quote.  We will help answer any questions you have have including; What mortgage is right for me? We have a top rating with the Better Business Bureau, a top rating with the Business Consumers Alliance and as mentioned we’ll always take the time to answer your questions. You can contact us directly at 1-800-550-5538.

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.

California Refinance Rates For Homeowners

Low Mortgage Rates At JBMCCalifornia Refinance Rates:

Refinance rates are relatively low compared to historical norms. As of January 1st, 2019 30 year fixed rates are between 4.125% – 4.625% (depending on the lender, loan structure and loan program).  Refinance rates continue to be near their recent lows as the bond market improves heading into 2019..  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.

Zero Cost Loan:

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.

“What Are The Current Mortgage Rates?”:Low Mortgage Rates at JBMC

We have an entire section of our website that is devoted to giving our clients current mortgage rate information. Be sure to check back often to see where the market is at and don’t hesitate to ask questions or request a quote. We also update our clients with the current bond market news (important to mortgage rates) and general economic news that may impact mortgage rates.

JB Mortgage Capital, Inc.:

We are a top mortgage company with the Better Business Bureau and the Business Consumers Alliance. We offer industry low mortgage rates, the latest technology to ensure a smooth and efficient closing long with one-on-one personal service. Loan Officer Kevin O’Connor has over 14 years of experience and can help you obtain the best possible mortgage for your next refinance.

Previous Post On Koloans:

As far as a process to determine if now is a good time to refinance; here is how I suggest a homeowner determine if it’s a good time to refinance. When a homeowners consider a refinance they first should A+ Ratingclearly understand their current rate/term before doing anything else. Second; try and locate your previous closing statement to determine if you paid points and if you paid any closing costs. Why is this important?