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Three Reasons to Refinance Now

If you are on the fence about refinancing, below are three good reasons you should consider:

Home Values:
Median values in California have increased rapidly this past year. The median home price of a Southern California home in May of 2012 was $280,000 but by May of 2013 it had increased to $368,000, a jump of 24%. Over the past year, about 2 million homeowners have been freed from negative equity and many of them have or should seek to sell or refinance. If you were unable to refinance in the past due to a higher loan to value ratio, it may now make economic sense to refinance.  In some cases values have increased enough to have Mortgage Insurance (PMI) removed. If you are looking to sell and need a experienced Realtor in your area to navigate the market, please contact us for recommendations. In this market, picking a knowledgeable Realtor could make all the difference.

Interest Rates and Federal Reserve Policy:
Mortgage rates increased for the sixth consecutive week with typical 15 fixed rates topping 3% for the first time in a year, and 30-year rates rising above 4% from a few weeks ago. The trend reflects Wall Street’s belief that the improving economy may cause the Federal Reserve to cut back the bond-buying program that has kept long-term interest rates artificially low. Some believe we may have one last bull run left of lower rates. Our advice is to begin the application process, so you are ready to lock should rates drop again.

New Escrow Account Rules:
If your credit is between 640-699, but you believe you could still lower your interest rate, you may want to consider refinancing or purchasing a new home soon. FHA currently mandates that property tax and home insurance payments be held in an escrow account for one year for most subprime-mortgage loans, however, beginning July 2013, homeowners with subprime loans (FHA) will be required to put five years’ of property tax and homeowner’s insurance costs in an escrow account with their lender. This is according to the Truth in Lending Act (also known as “Regulation Z”) from Consumer Financial Protection Bureau

 

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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