Refinancing California Mortgage Loans – Understanding the Drawbacks and Advantages

Refinancing California Mortgage Loans – Understanding the Drawbacks and Advantages

Prior to refinancing a mortgage loan, homeowners will benefit by
examining their financial situation and deciding whether a refinancing is the wisest choice. Today, many homeowners are taking advantage of low
interest rates. However, if your home rate is already comparably low,
refinancing may not be a good ideal. Here are a few factors to consider
before creating a new mortgage.

Reason Behind the Mortgage Refinancing Craze

Within the past six years, home mortgage rates have been steadily
declining. For homeowners who purchased their homes during the 1990's,
falling rates served to their advantage. Hence, they were able to refinance
8 or 9 percent mortgages for rates around 6 percent.

Homeowners who opted for an adjustable rate mortgage also benefited
from low interest rates. Adjustable rates have their advantages. For
example, they usually have low initial rates. However, these rates will
fluctuate throughout the life of the mortgage loan, which may result in an
increased mortgage payment.

For many, the thought of future unpredictable mortgage payments creates
a level of stress. To alleviate the problem, several homeowners chose
to convert to a low rate fixed mortgage. Fixed rates equal predictable
monthly payments that remain the same.

Benefits of Refinancing a Mortgage Loan

There are several advantages to refinancing a mortgage loan. For
starters, lower interest rates result in lower mortgage payments. The extra
savings can be used to start a savings account or payoff bills.

Moreover, by refinancing a home loan, homeowners have the choice to
receive cash at closing. This lump sum of money can fulfill a variety of
purposes. Common uses include debt consolidation, home improvement,
vacation, retirement, etc.

Drawbacks to Refinancing Mortgage Loans

Before refinancing a home loan, take into consideration closing cost
and other fees. Refinancing creates a new mortgage to replace the
existing. Hence, homeowners are required to pay certain fees. For this matter,
some mortgage professional discourage refinancing when savings are
marginal.

To benefit the most from a refinancing, the new mortgage interest rate
should be at least two percentage points below the old rate. If opting
for a cash-out refinance, a refinancing will increase the total cost
owned to your mortgage lender. Additionally, mortgage loans terms are
extended.

Carrie Reeder is the owner of http://www.abcloanguide.com. View her recommended sources for California mortgage refinance.

View our recommended California home mortgage refinance lenders online. Also, view our recommended lenders for a home owner loan online.

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Want To Know How To Pick a Mortgage Company

Want To Know How To Pick a Mortgage Company?

Picking a lender or a mortgage company to assist you in availing of financing or refinancing of your home is not as easy as picking which brand of milk to buy in the grocery. One common thing that people do is to shop around for lending companies or loan officers that offer the lowest rates.

While it certainly is not bad to canvas for the best rates in the market, people often overlook other important things to consider when choosing a home loan company like service,honesty and customer and satisfaction

Two Easy Ways To Find a Good Lender

1. Ask for referrals from family, friends, or co-workers who have recently financed or re-finance their home

2. Ask referrals or recommendation from your Realtor; he/she may have a lot of experience with people and may be familiar with a lot more mortgage companies than you

These two steps will not only save you time but you'll also be able to leverage on the experience of people close to you whom you can trust. Once you get a good list of mortgage companies that you may be willing to work with. Narrow them down further by considering the following questions.

Questions To Ask Your Lender

1. Tenure of the loan officer / home loan company - the longer they are in the business, the better!

2. What other loan products they offer aside from a plain vanilla home loan - you may be missing out on a great product if you don't inquire

3. How do they communicate with you? (phone, email, snail mail, etc.) - they must have at least two so you can do some cross-referencing

4. Will they be able to provide you references that you can contact?

All in all, don't just go out shopping for the lowest rates. Pick a mortgage company whom you know you can work with and trust to help you understand the whole process and give you selfless and non-self serving advice on products that will best suit your financial needs.

One More Critical Tip About Mortgage Companies

A good Mortgage Lender will make the mortgage process much easier. Additionally many mortgage companies will want to keep you as a client for life and will offer some great services like free rate alerts if interest rates drop. Companies like http://www.mayfairmortgage.com that go that extra mile for client satisfaction are hard to find but worth the search!

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Will I Owe Money If I Foreclose in California

Will I Owe Money If I Foreclose in California
It depends. The answer below assumes that the loan is not for a corporation, but an individual consumer.

State of California allows for non-judicial foreclosure process. This means that the foreclosing entity instead of going through the judicial system and filing a lawsuit can choose to foreclose under the contract. Majority of foreclosures in California are done in this manner.

If a mortgage lender chooses to proceed with a non-judicial foreclosure they forfeit their right to pursue you for a deficiency. A deficiency is the difference between what is owed and the proceeds received from the sale of the property.

However, this does not apply to a creditor who is not part of the non-judicial foreclosure process. This may be the case if there is a second deed of trust (second mortgage) on the property. The second mortgage lender simply waits until the other lender completes the foreclosure process. The second mortgage lender can pursue the debtor directly or sell the debt to a third party in the business of buying and collecting on these deficiencies.

But wait. All is not lost yet.

Under California Anti-Deficiency statute if the property is owner occupied AND the loans in question are purchase money loans there is no right to deficiency. Those types of loans are known as non-recourse loans. What this means is that as long as the second mortgage was obtained in order to purchase the property, that lender cannot obtain a deficiency to satisfy the loan.

If the second is a refinanced loan, then the debtor can be pursued for the deficiency. If payment is not received, the entity can file a lawsuit, receive a judgment and proceed with all the remedies available for collecting: wage garnishments, bank levy, placing liens on other properties. One way to avoid this is to try to hammer out a settlement agreement, in other words try to settle with the entity for pennies on the dollar. Another option may be to file for bankruptcy protection. Depending on the financial situation of the debtor a successful chapter 7 should discharge the deficiency as unsecured debt. If bankruptcy is a viable option, at minimum it can be used as a bargaining tool in negotiating a settlement agreement on the deficiency.

To get information about Bankruptcy San Diego, please visit http://www.sdbankrupt.com

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Tips on Buying a Home and Getting Affordable Mortgage Loans

Tips on Buying a Home and Getting Affordable Mortgage Loans

Looking to get a house in California but worried about the high interest rates on mortgage loans? You no longer have to worry. The value of real estate property in the state has been descending for the past two years now. You are now able to find some great deals on mortgage loans in the state thanks to this decline in the rates.

Today's low CA mortgage rates will allow you to save considerably on you monthly payments and in turn save thousands of dollars over the term of your mortgage loan. However, if you wait a little longer, expecting the rates to decrease further, then you won't get a chance to buy your dream home in this state. The value of homes will increase soon since the economy is now back on track. This means that the mortgage rates will also increase and you will have to pay higher rates on your loan if you procrastinate.

Getting a good interest rate is easier now thanks to the low CA mortgage rates, but you still have to be aware of brokers who are also going to take advantage of this situation. Brokers usually get incentives depending on how much they can raise the interest rate by. These incentives come from the lender and are determined by the difference in the lenders quote and what the broker charges you. If you are eligible for an interest rate of 5.5%, the broker will try to increase the rate since he gets 1% of the loan for every.25% increase in the interest rate.

There are also other ways in which brokers try to squeeze as much money as they can out of you. They may say that they will deduct the home origination fees by charging you a slightly higher interest rate, say about.50% higher. It may seem like a good deal since the origination fees do come up to a lot when you look at the sum as a whole. Many crooked brokers raise the interest rate and make forget about it by deducting the origination fees. This may seem good to you at first, but when you actually calculate, you will find that you are paying a much higher amount by not paying the origination fee.

To know whether a broker is trustworthy or not, see if he offers you such deals. If he does then do not deal with him and look for some other broker who will charge you the CA Mortgage Rates you are eligible for.

Get help with CA Mortgage Rates and tips on how to get the best Mortgage Loans. We also have some advice on Mortgage Insurance and Mortgage Brokers.

Article Source: http://EzineArticles.com/?expert=Robert_E._Hess

Hints and Tips on Getting the Best From a Mortgage Calculator

Hints and Tips on Getting the Best From a Mortgage Calculator
Most mortgage broker website these days have a page with a mortgage calculator, they are simple to use and can give you a rough idea of how much your monthly payments will be for both interest only and repayment mortgages.

Simply punch in the amount you wish to borrow or remortgage for, the interest rate required, and the term of the loan. Hit the calculate button and voila, monthly mortgage payments calculated for both interest only and repayment in the blink of an eye. With this information you can then fine tune the amounts and rates until you find something that fits into your payment profile.

These calculators are great to use if you are viewing property and have a blackberry as you will be able to calculate there and then if a property is affordable. Before the estate agent twists your arm in to putting in an offer for a property that you cannot afford.

The downside is that you may be entering a mortgage rate that is a) no longer available b) only available up to a certain loan to value c) not available to people with bad credit.

Before you go round recalculating every conceivable mortgage payment with your new toy, it is best to contact a mortgage advisor who will be able to let you know the types of deals available to you and what rate you can expect to get. With this information you will be surer that the figure that the calculator spews out will be available to you.

John Preest is the principal for J P Financial mortgage advisors, he is also a writer for financial newspapers and blogs. For more information on how to use a mortgage calculator, please visit our website or contact one of our mortgage consultants who will be able to talk you through the process of using one. We can also advise on second mortgages and commercial finance. Whatever your situation we will be able to find a mortgage product that fits your demands and needs.

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California Mortgages Home Loan Plan

California Mortgages Home Loan Plan

California Home Loans With New FHA Guidelines

California Home Loans With New FHA Guidelines

For those in California home loans with the FHA are coming under new guidelines beginning January 1, 2010. People in California need to be aware of the changes so that they can make the best decision for their own finances. Congress recently passed a bill that will extend the current FHA loan limits for 2010. Presently California FHA loan limits are capped at $625,500 in specified high cost regions.

What are the changes and what do they mean? Current California home loans with the FHA are relatively easy to get. They require no appraisal at this time. There is no maximum loan to value ratio and there is no asset verification. Income verification is not required and lower credit scores can qualify. And right now, because of the lack of these traditional restrictions, there are quick turn-rounds available on these loans. This has made California FHA loan refinances extremely popular with many people looking to lock in a lower rate. But time has become of the essence. This is going to change at the beginning of 2010.

On January 1, 2010, California mortgage loans with the FHA will become more difficult to get. If the home owner wants to roll his closing costs into the mortgage, an appraisal is going to be required, and it is now recommended in all cases. Without an appraisal, the new loan amount cannot exceed the principal due plus the new up-front mortgage insurance premium. The maximum loan to value ratio is going to be no more than 97.75%. If a homeowner wants to lower their rate by purchasing discount points, those cannot be rolled into the mortgage. Assets and income are going to have to be verified before approval. The homeowner also must be employed at the time of application. And there will be tighter credit restrictions as well. With these added restrictions, quick turn-rounds will be a thing of the past. All of these changes will likely not lower the FHA refinance's popularity. But it will make it available to fewer people.

Given these changes, FHA borrowers with California mortgage rates that are adjustable need to make decisions on FHA refinancing. If the tighter restrictions will make their hopes of refinancing fade, they might want to get the process done prior to the end of 2009. That means getting their loan documentation submitted and approved quickly. However, if they can live with the tighter restrictions, it might pay to wait until the beginning of 2010. It depends on the individual homeowner and their situation. Speaking with a California mortgage professional will help you make the refinance decision that is best for you.

Bryan Dornan publishes home financing and real estate marketing articles online. He recommends going online to review California mortgage loans and 2010 FHA loan limits by county. Dornan also recommends Nationwide for mortgage refinancing.

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California First Time Homebuyers Tax Credit - Benefits of Homebuyer Tax Credit

California First Time Homebuyers Tax Credit - Benefits of Homebuyer Tax Credit

The Government of California introduced the American Dream Down Payment Grant in 2009, in order for the US economy to get a boost. A special Homebuyer Tax Credit was facilitated for first time home buyers. One of the main advantages of this new grant is that there will no longer be a need for loan sharks giving loans to people who need it most. Home buyers can now turn to credible banks and loan companies instead of realtors.

This is a wonderful opportunity for first time home buyers to take up financial assistance of the banks, as once they are in possession of their property, whatever equity is in it can be used as a source of down payment for the next property.

It is important to mention the vast amount of tax savings through the mortgage interest. If you are renting a house for a certain amount, that amount can be applied towards your mortgage payment. As a result, you receive a large tax deduction and the preliminary mortgage payment interest is also tax deductible. This makes sense if you want to keep your annual expenditure low.

The government of California is calling this money as free money, because there are no monthly payments to be made so it is virtually free as these funds remain idle as a second mortgage until the day they are paid back, unless you reside in the same property for a period of thirty years.

Lastly, owning a house is high on the list of investments as property prices continue to rise. Now is the best time to take advantage of low interest rates and the home buyer tax credit is one of the best schemes that have been introduced in California. Your dream of owning your own home is now a closer dream than ever before.

Homebuyer Tax Credit now helps qualifying first time home buyers in California. Get the low down now at http://www.nphsrealestate.org

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The California Extension of the Mortgage Relief Act

The California Extension of the Mortgage Relief Act was in response to a severe housing market reversal. In 2007 when the market took a downward turn it left many homeowners in a difficult economic situation. Their home was their largest investment and biggest financial asset.

When the prices for homes fell below the value of the amount still unpaid on their mortgage, they were left with no possibility of selling the property in order to pay off the remaining debt. Many were left with few alternatives other than foreclosure. California residents especially experienced huge losses during this housing crisis.

Due to this downturn, many lenders worked with homeowners by forgiving part or even all of remaining loan balances. This solved some of the homeowner's problem, but the forgiven debt would then be applied as an asset to their taxable gross income. The lender would file the loss on a 1099-C tax form and the homeowner would need to file the loan modification as income.

The California Extension of the Mortgage Relief Act lengthened the reportable years of other similar legislation and excluded these forgiven debts as taxable income under certain circumstances. This Act now covers the years between 2007 through 2012. This act specifically covers homeowners, and if they qualify, they can exclude the forgiven mortgage debt by filing Form 540X the Amended Individual Income Tax Return. This does not cover second homes or business properties. The limits are between $500,000 per person and $250,000 for married couples or registered domestic partners filing separately. The State of California Franchise Tax Board has copies of the necessary forms and guidelines.

California is taking a proactive stance in extending the Mortgage Relief Act through 2012. By allowing homeowners a respite from the financial damages of the housing crisis this state is aiding all residents toward a faster economic recovery.

Mortgage Relief Act, now aiding all California residents toward a faster economic recovery. Get the inside scoop now on http://www.nphsrealestate.org

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