Types Of California Refinance Mortgage Loan Programs

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Types Of California Refinance Mortgage Loan Programs

This BLOG On Types Of California Refinance Mortgage Loan Programs Was Written By Quiana Williams of Gustan Cho Associates Mortgage News

California has one of the highest housing values in the nation.

  • California home values really plummeted after the 2008 real estate housing collapse
  • Mortgage Rates today is at an all time high since the 2008 Real Estate and Mortgage Meltdown
  • Rates are expected to get higher but that did not slow down home purchases by home buyers
  • With higher rates, normally there is a slowdown in home purchases
  • Inventory of homes in all counties throughout the state of California is very low compared to the demand of home buyers
  • Many California homeowners due not realize how much their property has appreciated in value
  • Many homeowners who never refinanced still have mortgage rates in the 7% and over
  • Right now may be the time to consider doing a California Refinance rate and term
  • There are many types of California Refinance Mortgage Loan Programs

California Housing Market Spike Enables Homeowners For Cash-Out Mortgages

Homeowners with equity due to the huge appreciation in home values in the past several years may consider doing a cash-out California Refinance Mortgage Loan.

  • Many areas of California have home values drop in the double digits back when the real estate market crashed
  • Some home values even dropped as much as 50%
  • There are home buyers who have purchased a home in California at the bottom of the California real estate market
  • The bottom of the California housing market was from 2009 to 2012
  • Home buyers who purchased a home in California during 2009 to 2012 have purchased their homes at bargain basement prices
  • California home prices have seen appreciation of home values year after year without a bounce back
  • Some California homeowners have seen their home values appreciate more than 30%
  • There are homeowners who have their home values up more than 50% since they bought them

California Homeowners can consider doing a cash-out refinance mortgage.

  • FHA allows up to 85% LTV Cash-Out Refinance
  • Conventional Loans allows up to 80% LTV Cash-Out Refinance
  • VA permits up to 100% cash-out refinance mortgage

Conventional California Refinance Mortgage To Eliminate FHA MIP

California homeowners who purchase their homes between 2009 and 2012 with a FHA Loan should check to see what their home values are currently.

  • Many homeowners who purchase their California homes with a FHA loan should consider doing a California refinance mortgage with a conventional loan
  • Depending on the equity, they can eliminate their annual FHA mortgage insurance premium
  • Average California homes are $400,000
  • Much higher than the average home value in the United States
  • Eliminating the current 0.85% annual FHA mortgage insurance premium off their mortgage payment could save them thousands of dollars over the term of their home loan
  • There is no private mortgage insurance required on all conventional loans with at least a 80% loan to value
  • Even if the loan has higher than a 80% loan to value, private mortgage insurance on a conventional loan can be much lower than the FHA MIP
  • Homeowners with higher than the 80% loan to value can also select the LPMI
  • Lender Paid Mortgage Insurance requires no private mortgage insurance
  • Lender will include the private mortgage insurance as part of their mortgage rate
  • Rates are slightly higher for lender paid mortgage insurance conventional loans
  • But homeowners does not have to pay a separate additional monthly private mortgage insurance payment

FHA Streamline California Refinance Mortgage

FHA has reduced the annual 1.35% FHA annual mortgage insurance premium to 0.85% on January 26th, 2015.

  • That is a 0.50% reduction in FHA mortgage insurance premium
  • Average mortgage loan sizes are much higher in the state of California than other parts of the country
  • Reduction of FHA annual mortgage insurance premium, California homeowners should consider doing a California FHA Streamline refinance mortgage
  • No income verification is required, no appraisal is required, and no credit scores are required

California FHA Streamline Mortgage

California homeowners with a FHA loan who have been timely with their mortgage in the past 12 months can save thousands of dollars on the term of mortgage loan by refinancing to a California FHA Streamline refinance.  Please contact Quiana Williams of Gustan Cho Associates Mortgage Group at 951-965-6550 or text Quiana for faster response. You can also apply online by clicking APPLY NOW and complete the secured 4 page mortgage application to get the pre-approval process started. All of our pre-approvals are full loan commitments that has been underwritten and signed off by our mortgage underwriters. We are direct lenders with no overlays on government and conventional loans.

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