California Refinance Mortgage Loans

CALIFORNIA LOANS

Gustan Cho Associates

California has one of the highest housing values in the nation. California home values really plummeted after the 2008 real estate housing collapse.  Many areas of California have home values drop in the double digits, 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% and there are homeowners who have their home values up more than 50% since they bought them.

California Refinance Mortgage: Eliminate FHA Mortgage Insurance

California homeowners who purchase their homes between 2009 and 2012 with a FHA insured mortgage 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 where 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, and 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 mortgage loan.  There is no private mortgage insurance required on all conventional mortgage 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 is much lower than the FHA mortgage insurance premium.  Conventional mortgage loan borrowers with higher than the 80% loan to value can also select the LPMI, Lender Paid Mortgage Insurance, where no private mortgage insurance need to be paid by the borrower and the conventional mortgage 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 the borrower 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 and with the combination of mortgage rates being at a two year low and the reduction of FHA annual mortgage insurance premium, California homeowners should consider doing a California FHA Streamline refinance mortgage where no income verification is required, no appraisal is required, and no credit scores are required.

California FHA Streamline Mortgage

If you are a California homeowner with a FHA loan and you have been timely on your FHA loan in the past 12 months, you can save thousands of dollars on the term of your mortgage loan by refinancing your FHA loan to a California FHA Streamline refinance.  You can contact me at gcho@gustancho.com or call me at 262-716-8151 to see how much we can lower your monthly mortgage payment.  You can also apply online by clicking APPLY NOW and complete the secured 4 page mortgage application for a fast pre-approval.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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