Advice, Community & Common Sense

Home values in California are causing real issues with lenders nationwide, and they are becoming more conservative as a result.  Borrowers that are looking to refinance are being effected adversely.  Unfortunately, "short sales" (selling for less than is owed and leaving the bank to absorb the difference, or the 'shortage') and foreclosures have started to drag down some areas' home prices.  This is starting to make it more difficult to appraise homes for sufficient values, and can hamper refinancing plans.  In addition, many lenders are reducing their "loan to value" guidelines for CA loans by as much as 5% or 10% LESS than their guidelines for other states.  We have recently been seeing this option instated more and more.

If you are on an adjustable mortgage (either with an initially fixed term, or a neg-am loan) and will need to refinance in the next few years before your fixed period term is up, we should consider looking at options now.  Or if you are thinking of refinancing for any other reason within the next year or so, let's discuss the best options today.  I have many clients that are already in the position right now of not being able to refinance due to dropping values in their area, and I want to get ahead of this curve for you while we can.

Finally, many people are of the belief that the rates may drop even further this year, but because NO ONE can truly see the future, I suggest we look at options now.  Don't risk decreasing property value challenges later.  If we are lucky enough to have rates drop again and values are holding, we will refinance you again and we will pay all your costs.  We eliminate the risk.

Please e-mail both David Rooney, my coordinator, and me, and we will get to work on your options right away.  Or call us at 800-573-6379.

THE GOOD NEWS IS that rates are the lowest in over 2 years so there won’t be as much sticker shock as there has been during the last 12 months when you've checked in before.  We may even be able to beat your current rate in this recent dip in rates! 

All the best to you in 2008!