Mortgage FHA rates in Sacramento, California

The New FHA In San Jose-California 

San Jose-California mortgage borrowers looking for an FHA mortgage refinance will find the article helpful.FHA has loan amount limits based on Specific County throughout California and for every state. California mortgage borrowers need to know the basics of an FHA loan.FHA mortgage is backed by Federal Housing administration. What that means is that you have an FHA loan the bank knows that its mortgage amount is secured and hence banks feel comfortable in lending money on mortgage as FHA. Another advantage of having an FHA loan is that since it’s backed by a government agency, it is not credit score sensitive. Meaning, unlike conventional mortgage where if you have excellent scores you qualify for lowest mortgage rates. Here with an FHA even if your score is 660 you will still get a mortgage rate as if your credit score were 740.

Another thing to know is that if you need to take cash out on FHA mortgage. FHA allows you to borrow 85% of the value of the home. Whereas if you have conventional mortgage you can borrow no more than 80% of the value of the home.Upfront Mortgage insurance Premium is a onetime cost that is normally built into the loan. FHA is backing your loan but you have to buy policy just like you buy insurance and pay premium. There is no free lunch.San Jose –FHA mortgage borrowers should know that when you refinance FHA, this upfront mortgage insurance premium is adjusted with the new upfront premium. 

The monthly mortgage insurance premium is different and this almost will never leave the borrower. So if you feel that your mortgage amount is 80% or less of the current value of home you must switch your mortgage from FHA to conventional. It is the only way to get rid of your mortgage insurance.

San Jose- California FHA mortgage borrowers looking to refinance can look into STREAMLINE FHA as refinance mechanism. No new appraisal will be needed; fewer documents are needed because the last time you took an FHA loan it’s already insured by FHA.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. You can even e mail at roger@affordable-payment.com

Article by Roger Shanker 

San Jose CA Mortgage Rates - Find Home Loans in San Jose

San Jose-California | Mortgage refinance with Lowest Mortgage Rates | No Closing Cost Refinance

The frequency of Refinancing homes in California is very high. Borrowers are hooked on to the net and keep a track of what is going on in the market and a slight indication of mortgage rates coming down. They instantly look for refinancing.Statistics hold that those mortgage borrowers who are very active in refinancing or refinancing more often are often the borrowers who either pay off the mortgage or are smart borrowers.One of the reasons why California mortgage borrowers refinance so often is because cost the cost of living in California is higher than most other states. So saving few a hundred dollars is not a bad idea.The other reason why California mortgage borrowers refinance so often is because the closing cost of the mortgage in California is very less.

Those borrowers who are looking to refinance more often should always go for NO CLOSING COST mortgage. Yes what that means is that nothing is added on to the mortgage in terms of cost as the cost is zero. The borrower only gets to save a few hundred dollars a month without having to pay for closing cost.Some borrowers feel that nothing is free and so there must be some catch. It’s partly true. Assume that you have a 5% rate and you are being offered 4.5% on a mortgage of let’s say $ 400,000 as that is what mortgage loan balance is on average in California as a NO CLOSING COST loan. On a conventional mortgage the closing cost on California refinance would be approximate $ 4000. So the borrower is neither paying that money from his wallet nor is the cost being added on to the mortgage. So basically your principal balance remains the same that is $ 400,000. Had the cost been included or charged the new loan amount would have been $ 404,000.Truthfully what your mortgage expert is doing here is a trade off. 

The borrower likes the idea of his mortgage balance not increasing and doing the mortgage for no closing cost. Instead of offering 4.375% to the borrower with a cost of $ 4000 the California mortgage expert is simply offering the rate which is .125% higher at no cost.The advantage to the borrower is that lest say in a matter of 6 months as that is usually the lock in period before a borrower should do a consecutive refinance. The mortgage rates have come down in the market. Had the borrower paid $ 4000 as cost which is included in his mortgage for a rate of 4.375%. Even if the rate can now be reduced to 4%. The borrower will not be tempted because he is now reminded of $ 4000 cost that he just paid or added to his loan amount 6 months back. So to pay another $ 4000 as closing cost would be like paying $ 8000 to reduce the rate from 5% to 4%.

Hence California mortgage borrowers realise that it’s better to go with a no cost loan and take a slightly higher rate than the market rate but go for no cost mortgage so that they can refinance as many times as possible until they have the lowest possible mortgage rate. Let’s take a closer look at the impact. 4.5% on 30 years fixed on a $ 400,000 as NO COST mortgage results in monthly mortgage payment of $ 2026. At 4.375% WITH COST OF $ 4000on a $ 404,000 the monthly mortgage payment would be $ 2017. As a short term view to save 2026 – 2017 = $ 9 paying $ 4000 as cost makes little or no sense. Yes if you stick to the mortgage for 30 years then it does make sense. Like I said. If you are an active borrower who would want to refinance over and over again every 6 or 7 months. You should go for No closing Cost mortgage refinance.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. You can even e mail at roger@affordable-payment.com

Article by Roger Shanker 

FHA Mortgage refinance in San Jose

FHA Streamline Refinance in San Jose, California

For those who have FHA Mortgage in San Jose city. The best way to get this done is to seek an expert help from someone who specialises in doing FHA loan for San Jose borrowers.You may have an FHA Loan and with property value going up. You may be tempted to look into options to remove mortgage insurance.Are San Jose Mortgage Borrowers aware that with current guidelines its almost a dead end for anyone who wants to remove mortgage insurance and continuing with FHA mortgage at the same time.The only way to get it waived is by switching your mortgage from an FHA to a conventional Mortgage.

San Jose mortgage borrowers may feel that it may not be safe to switch from an FHA to a conventional mortgage. Well that is not the case. As long as the conventional mortgage follows the guidelines of Fannie Mae and Freddie Mac. San Jose mortgage Borrowers need to  understand they are safe. An expert San Jose mortgage lender or San Jose Mortgage Expert would be able to correctly advice them to switch to a conventional mortgage.San Jose Mortgage borrower need to appraise the property and as long as the new mortgage balance is 80% or less than the new appraised value. San Jose mortgage borrowers do not require to pay any mortgage insurance.An expert San Jose mortgage Lender or San Jose Mortgage Expert can provide with several choices to choose from.

Are San Jose Mortgage Borrowers aware of FHA Stream Line Mortgage?

Most San Jose FHA mortgage borrowers are not aware of what a stream line FHA Mortgage is. This is one of the unique features of FHA.An expert San Jose Mortgage Expert Or San Jose Mortgage Lender will take some time out to explain what FHA Stream line is.Once San Jose mortgage borrowers go in for FHA mortgage and they are looking to refinance. Most of the times they feel the pinch of the cost. Though the cost of refinancing is the least as compared to any other state. Yet anything that can get savings by having to pay less is always what San Jose Mortgage borrowers want.What an FHA stream line does is that the mortgage borrows can get their mortgage done without paying for any fresh appraisal or paying for any cost or minimum cost on the mortgage.

Isn’t it great to get savings without having to pay anything? Yes, that is what an FHA Stream Line means.

San Jose FHA cash out Mortgage for San Jose Mortgage Borrowers:

Most borrowers are not aware that it is only FHA Product that allows mortgage borrowers to borrow 85% of the total appraised value of the home.  Whether you wish to pay bills, help your child with college or even if that means to take a vacation.With so many features to chose from to manage your finances. San Jose mortgage borrowers need to speak to a San Jose Mortgage Lender or San Jose Mortgage Expert.

Lowest rates on FHA:

San Jose mortgage Borrowers may not be aware that FHA mortgage has the lowest rates. Lower than conventional loan by a huge percentage.So if you are a borrower who’s borrowed more than 80% of the value of the home. You need to look towards FHA and find out the lowest rate you can get for yourself.You will be surprised to know that the lowest rates are with FHA than with anyone else.For all this the best way forward would be to talk to San Jose Mortgage Lender or San Jose Mortgage Expert.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154 

Article by Roger Shanker