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Refinancing Still an Option for Some

If you have been unable to refinance during the past 5 years due to a lack of equity, you may be able to do so now due to increases in home values over the past several years. Home prices in California rose in the past 12 months through August by the most in more than seven years helping boost owner equity.

Recently we refinanced several of our clients who, in the past, were unable to do so because of higher loan to value ratios (LTV). These borrowers easily qualified for a mortgage but lacked the 20% equity needed to refinance without Private Mortgage Insurance (PMI).Even if your current LTV requires PMI, it may still make sense to take advantage of the lower rates now and remove the PMI once you reach 80% LTV. We have rare Platinum status with our PMI partner and offer 4 different PMI options with low monthly payments. For example the monthly PMI payment on a $250,000 loan with 90% LTV (10% Equity) is only $64. Call us for no obligation consultation and valuation of your property.

Interest Rates:
The Federal Reserve and Fed Chief Ben Bernanke surprised everyone last week by announcing the Federal Reserve would not reduce its purchases of Treasury bonds and Mortgage securities later this year. Mortgage rates had surged in anticipation of the move to taper purchases, dipped lower after Wednesday’s announcement but still remain higher than one year ago. However, from a historical perspective, current mortgage interest rates are still incredibly low with today’s rates still over 2 full points lower than 2 decades ago.

If the time is right for you to purchase a home, rental property, second home, or refinance your current mortgage, please contact me for a no obligation quote and Pre-Approval.  And please don’t forget about the government assisted HARP 2.0 program – we will gladly check your loans to determine if you are eligible.

Current Conforming Rates
(Pmyts based on a average loan amount of $250,000)
for a historical perspective on rates please visit my blog on our website

Loan Program

Monthly Pmyt

Rate

APR

Points

30YF

$1248

4.375

4.50%

0

20YF

$1531

4.125%

4.375%

0

10YF

$2557

3.375%

3.625%

0

15YF

$1771

3.375%

3.625%

0

5/1 ARM

$1122

3.50%

3.75%

0

7/1 ARM

$1193

4.00%

4.25%

0

FHA 30YF

$1229

4.25%

4.50%

0

FHA 15YF

$1756

3.25%

3.50%

0

Current High Balance Rates – Max Loan Amount $625,500
(Pmyts based on a avg loan amount of $550,000)

30YF

$3169

4.50%

4.75%

0

15YF

$4626

4.00%

4.375%

0

5/1 ARM

$2896

3.75%

3.87%

0

7/1 ARM

$3031

4.125%

4.50%

0

FHA 30YF

$3123

4.375%

4.75%

0

Disclosure: These are our current conforming and High Balance rates based on primary residences only, your actual rate could be higher depending on several “Risk Factors” such as credit score, LTV, Cash-out, Investment prop, 2nd home, zero cost etc. Please call us for an accurate custom quote including jumbo loans up to $2 million and beyond.

 

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