Category Archives: Home Loan Information

The Return Of The 3 Percent Down Mortgage Loan

Fannie Mae and Freddie Mac announce plans to re-introduce low down loans.

The real estate news just keeps getting better! From lower interest rates to loosened loan restrictions, there are great things happening for home buyers and sellers as we head toward the New loan programs for home buyersnew year.

The “Great Recession” had done a lot to change things in real estate, especially when it came to qualifying for a home loan. Standards had tightened in an attempt to correct mistakes made by practices such as “sub prime” and “stated income”, which had helped fuel issues that led to the near collapse of the industry a half decade ago. read more

Will Lenders Loosen Loan Standards In 2015?

New guidelines from Fannie Mae and Freddie Mac may help boost the real estate market.

As we mentioned in our last article, lending practices over the last few years have tightened up…and for the most part, for very good reasons. Of course, with those tightened restrictions, Santa Clarita Real Estate Updateunder such monikers as “QM” (Qualified Mortgages), many potential home buyers were left in the lurch, unable to obtain loans at nominal and competitive rates.

So the lending industry ended up in a tradeoff: More restrictions led to less risk, boosting the industry to some degree without the chance of another real estate crash. However, in many markets, this has restricted the opportunity for a true (and final) real estate recovery. read more

Buying a Home When You’re Self-Employed

New rules have made the home buying process a bit trickier if you own your own business, but it’s not impossible.

There was once a time when, if you were self-employed, that it wasn’t that much harder to get a home loan than if you were gainfully working for someone else. Lenders used to use your Cheryl Lichen -ooper“stated income,” with very loose rules on verification. At the height of the subprime lending craze about a decade ago, it was pretty easy to get a loan without any type of income verification. In some cases, your tax returns weren’t even needed to prove you earn what you said you earned. read more

Interest Rates Drop Back Below 4%….Again!

Home buyers should take this opportunity to leverage this incredible purchasing power.

It seems to have defied all expectations by major financial analysts who predicted that rates could jump as high as the mid 5% range by 2014. Amazing to see how those predictions Mortgage rates continue to dropturned out, as interest rates fell below 4% this week for the second time in a month.

So how did the analysts get it so wrong? If you remember, in early 2013 rates were down nearly to 3 and a half percent before taking a jump back as high as the mid 4’s by summer. This was a result on a selloff of mortgage-backed securities based on information from the Federal Reserve that they would consider reducing the monthly stimulus that had guaranteed mortgage stocks since November of 2008. The monthly stimulus added up to $85 billion. This practice is known as Quantitative Easing (QE). read more

New 15 Year Mortgage Is Offered To Buyers With Zero Down Payment

Wealth Building Home Loan program gives buyers an opportunity to pay off mortgage faster with less risk.

There are many home loan types available to home buyers. The most popular is the traditional 30 year fixed-rate mortgage. However, these loans, while usually offering some of the best Santa Clarita Real Estaterates to qualified buyers, require a down payment of 20%. There are other loan options with lower down payment qualifications. The ARM (Adjustable Rate Mortgage) is an option used by many who are looking to get into a home with a lower mortgage payment to start, but know that their interest rate (And loan payment) will eventually rise over time. read more

What is an APR, and Why Is It Different From An Interest Rate?

Understanding how your loan works can possibly save you money in the long run.

Good news! As of close of business on July 1st of this year, fixed-rate mortgage interest rested at 4.14%.interestrates

In other news, even with a perfect credit score, this will still not be the interest rate you’ll end up with for your home loan.

There are a lot of factors that go into determining how high (or low) mortgage interest rates will go. The buying and selling of Mortgage-Backed Securities make up a large part of the “cost of lending money.” The simple explanation behind Mortgage-Backed Securites (MBS) is that your loan may be sold by your lender, along with a group of other loans, to a securities broker who will bundle them and sell them on the open market to investors, who make their money either from trading, or by money brought in through payments and equity. read more

Mortgage Rates Continue To Fall

Mixed economic news gives strength to bond market, which in turn helps lower loan rates.

Mortgage rates have dropped to their lowest point in 2014, with conventional fixed rate loans dropping to 4.16% as of Friday, May 16th. This news flies in the face of Mortgage rates continue to droppredictions made late last year by some financial analysts who said rates would be over 5% this year.

What is driving these rates downward?

Stocks and bonds have a lot to do with interest rates as financial investors have been making significant moves toward the bond market in light of mixed news about economic recovery. Bonds, while granting potentially smaller yields than stocks, are a safer investment. A stronger bond market will almost always drive interest rates downward. read more

Mortgage Rates Reach All New Historic Lows!

Home loan mortgage rates have hit a milestone as they drop to a new record low. On average, a 30 year fixed mortgage rate is currently offered at around 3.53%, with 15-year rates dropping below 3%. These rates are based on approved credit by your lender.

This means that there has never been a better time to buy a home. With rates like this, you May qualify either for a lower mortgage payment, or a higher loan amount, which allows you a greater selection of homes and price ranges to choose from. read more

First-Time Home Buyer Grants

2012/2013 First-Homebuyer Grant Program for San Fernando & Santa Clarita Valleys

The Southland Regional Association of REALTORS® is currently offering grants to qualified homebuyers who purchase their first home within the San Fernando or Santa Clarita Valley and have a low to moderate income-level. The amount of each grant will be $2,000 and will only be paid to qualified applicants after the close of escrow while funding lasts. Repayment of grant is not required.

NOTE: THERE ARE A LIMITED NUMBER OF GRANTS. GRANTS WILL ONLY BE AWARDED TO THOSE APPLICANTS WHO QUALIFY AND WILL BE DISTRIBUTED ON A FIRST-COME, FIRST-SERVE BASIS. THIS GRANT PROGRAM WILL LAST ONE YEAR BEGINNING MAY 7, 2012 OR UNTIL ALL GRANTS HAVE BEEN AWARDED, WHICHEVER COMES FIRST. BUYERS MUST BE ADVISED THAT SIMPLY SUBMITTING AN APPLICATION DOES NOT GUARANTEE AN AWARDED GRANT. read more

So Why Aren’t Condos Selling?

Well, I shouldn’t say they aren’t SELLING, they are; but they are lagging far behind single family residences in sales volume.

While single family home inventories are significantly low, condos are also still dropping in price. A great sign for buyers, but for sellers? Hmmm…

Median condo prices bottomed out in January at $184,500 and then improved in February to $194,000 but slipped again in March to $190,000 – down 19.1 percent from the year-ago price of $235,000. Condo prices haven’t improved year-to-year since April 2011. read more