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- California Home Loans
- Chico, California Housing Market Report - January 1st, 2007
- Click here to get your
- Current Mortgage Index Values
- California Real Estate and Young Couples
- Feeling Lost With Your California Home Loan?
- Going Beyond "The Rate.."
- Helping Your Clients Relocate to California!
- Comparing "apples to apples" while shopping mortgage rates.
February 2007
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California Home Loans
California Real Estate Podcast
February 10, 2007
January 10, 2007
January 02, 2007
Chico, California Housing Market Report - January 1st, 2007
Hey Everyone,
Virgil Cole is an awesome Real Estate Agent at Prudential Real Estate in Chico, California and he puts together a comprehensive market report of what has been taking place in the local Chico market over the past few months. He spends alot of time putting together the data and I'm sure that many homeowners and investors in our market will be interested in seeing the results. Feel free to contact either of us if you are looking to purchase or refinance your home. We're here to help you!
Virgil Cole Scott Gormley
Have a great day!
Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.chicoloan.com/
Blog: http://www.CALoanBlog.com
"You find the perfect home, we'll find the perfect loan!"
December 29, 2006
December 28, 2006
California Real Estate and Young Couples
Last night, I got into a good discussion with some family and friends about how things have changed in Real Estate...Specifically...For Young Couples!
Over the past few years, there have been some MAJOR changes in the Real Estate Market!
Homes across the United States have doubled, tripled and even increased in some parts by 5-600%! I know condos in Southern California that were selling for $150,000 that are now appraising and on the market in the mid $500,00's! A half a million dollars for a 1000sq foot condo! And, the association dues are a couple hundred dollars a month as well! Ouch!
The game has changed up drastically...and you want in the game! Or maybe you don't want to be in the "game", but you simply want to take part in the pride of ownership to provide for your family like your parents have and you're simply trying to figure out a way to get there...
Everyone in my age bracket (late 20's) is in the same boat. Our parents started off their families and were able to save the 20% to put down on a home (which wasn't that much in the scheme of things...often borrowed.) Back then, many of them purchased their first home for the average price of a new car these days...Have times really changed that much over time? Sure, interest rates were higher and wages were lower back then...But was it REALLY THAT MUCH DIFFERENT? I think proportionally, it's MUCH DIFFERENT!
Now we must work more hours, invest wiser, find higher paying jobs, save more and have a great budget in place...Not an easy thing to do with my generation. One that has a "have it now" personality..That's right..Have it now...pay for it later!
So...What can you do?
Lenders have "First Time Home Buyer" programs that allow you to finance up to 106% of the purchase price on a home. That's right, you can increase the purchase price and have the sellers offer you a closing credit at the close of escrow to take care of your closing costs. This reduces the amount of cash that you need to come to the table with to purchase the home.
Affordability Factor? In California, I've read statistics that vary between 12-14%. That means that out of 100 people, 12-14 people are in a position to afford that home. Many assume that they are the ones that wouldn't qualify...You might be suprised! The only way to find out is to put yourself out there and try. Find a mortgage professional that understands and can identify with your situation. The worst thing that can happen is you find out where you lie if you don't qualify...but you can set-up a game plan with goals to put yourself into a situation to increase your chances of qualifying.
What are many of us doing?
Moving to areas that are more affordable - I moved my family to Chico, California. We purchased a new home in late 2006 for under $300,000! More home for less...Many of our parents are even making the decision to move to a more affordable area...Why? Most of their net worth is in the form of equity in their home. So, they are "cashing out" and moving to a place where they can get more square footage for less...
Interest-Only Loans -Many of the loans in California are on an Interest-Only product. This means that you are paying what is due to the bank in interest and that's it...no more..no less..So, do you think property values will continue to go up? If so, this might be a loan product for you! The alternative is a "fully ammortized" loan, which will reduce the balance of your mortgage on a monthly basis.
Lease with the option to buy transactions -Young couples that have little,no or bad credit can lease a home from the owner with the option to buy. In such a transaction, the homeowner allows for a "predetermined" amount of your rents to be placed towards the purchase price...Not a bad deal and it works quite well for those that wouldn't traditionally qualify for a home loan.
Purchasing a home is one of the biggest decisions that you can make! Be sure to work with a mortgage professional that takes the time to go through your scenario, treating you with the respect you deserve. You'll be glad you did!
Scott Gormley
Broker/Owner
Oak Valley Mortgage
Direct: 530.592.8362
eMail: Scott@OakValleyMortgage.com
Website: http://www.caloan.com/
December 26, 2006
Feeling Lost With Your California Home Loan?
Are you feeling lost with your current California Home Loan? You don't know when your home loan is about to adjust...But, you know it's soon! You don't know when it is going to "flip to an adjustable rate." You don't know when the prepayment penalty is over from your previous refinance.
Don't feel alone! There are thousands of California home owners that are going to refinance their homes in 2007, getting out of their adjustable rate mortgages and back into a "fixed loan." Why? They are recognizing an increase in their monthly payments and it is putting pressure on their monthly budgets. These homeowners want to take back the control in their monthly payments and their mortgage, while taking advantage of low long-term 15,20,30 and now 40 year fixed loans!
If you fit into this category...feel free to give us a call. We'll take the time to treat you right and go through your individual scenario. We'll even tell you if we think you should stay in your current loan, if it works to your advantage!
There are lots of things to take into consideration when you are looking to possibly refinance your home. Making sure that you are in good hands, we'll keep you informed throughout the entire loan process and we typically take 3 to 4 weeks from start to finish. So give us a call...
We seek Win Win relationships with our friends,family and clients.
Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.CALoan.com
Blog: http://www.caloanblog.com/
"You find the perfect home, we'll find the perfect loan!"
December 22, 2006
Going Beyond "The Rate.."
Everything in the mortgage industry is geared towards the rate. What are your rates? Who h
as the best rates? What are the rates doing?
I'm here to tell you that the mortgage industry goes far beyond what the rate is. The rate is just a number! Yes, a number the ultimately determines the amount that a client will pay on his/her mortgage every month...but it still goes deeper than that. For example, "Does the rate really matter if you don't get the loan to begin with?"
The mortgage industry is about people. With that, it's about asking questions and understanding the goals, objectives and financial abilities of an individual client. What may be right for one client is completely different for another!
For example:
Family A: Mom and dad are "empty nesters." Their children, Jason and Michelle are out of the house and now they have much more space in their home than they needed before. Most of their "net worth" is in their home, because they have been focusing their money on paying down their mortgage and they have been realizing a great deal of appreciation on their home. The couple's intention is to move into a smaller condo in a few years, but they want to start investing in the stock market or they want to start traveling while they can. They sit down one night and decide to do a "cash out refinance" on their home. In this scenario, it makes sense for the client to be in a short-term adjustable product. Why? The couple's intention is to be in the home for a short period of time before selling and they can benefit from getting a lower interest rate on a short-term loan....n
ot a 30 year fixed!
Family B: A young couple purchases a new home and their intentions are to raise their children in the home. For this couple, it makes more sense to protect themselves from rate increases by locking in on a long-term loan, such as a 15,20 or 30 year fixed. Why? Over the long term, rates will likely increase. Having the comfort of set payment, especially on a new home, will help the young couple set a budget and have a "game plan."
Working with a mortgage professional that understands this concept and works towards understanding your needs will make the entire loan process much more enjoyable. Purchasing or refinancing your home is one of the biggest decisions that you will make and knowing that you're in good hands is VERY IMPORTANT!
Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.caloan.com/
Blog: http://activerain.com/blogs/lendingmagician
"You find the perfect home, we'll find the perfect loan!"
December 20, 2006
Helping Your Clients Relocate to California!
Helping Your Clients Relocate to California!
This blog is to everyone in the Active Rain community and professionals in states outside of California! If you have clients that are looking to relocate to California from your state and you don't have a resource for them...I would appreciate the opportunity to be it! I own Beach Town Mortgage in Southern California and Oak Valley Mortgage in Northern California. Through Active Rain and several other networks and events, I have an extensive network of people in California that can help your clients make a hassle-free and smooth transition from their old home to their new home. Feel free to give me a call or pass my information onto your clients. There is a comfort in knowing that your clients are still in good hands when they have decided to relocate to California, which can be stressful by the process itself. I moved to California in 1990 with my family from Rhode Island and I can relate to the changes that a family must go through in the transition. Even though a client may not be purchasing property or needing your services now that they are moving to California, they certainly have a network of family and friends that will be referred to you for your good service to them of helping in the relocation. As we all know, referrals from friends and family are the lifeline to our business and I will continue to respect that relationship!
Feel free to contact me if you need any help for your clients as I would appreciate the opportunity to extend the
good service that you have shown them for all those years!
Regards,
Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.CALoan.com
Blog: http://activerain.com/blogs/lendingmagician
"You find the perfect home, we'll find the perfect loan!"
December 18, 2006
Comparing "apples to apples" while shopping mortgage rates.
I was offered a 5% fixed for 30 years, can you beat it?
More often than not, borrowers get so caught up in the "rate" that they fail to look at the actual product being offered to them. My goal is to help you avoid this pitfall to save time and money. There are virtually hundreds of loan products that are offered on the market today. More often than not, receiving a "rate quote" on the Internet or over the phone is meaningless if you don't understand the terms that apply to that rate. I always tell my clients to make sure we are comparing "apples to apples" and not "apples to oranges". Comparing offerings is a crucial part of the purchase or refinance decision. By following these 5 simple steps, you will be able to ask the right questions and choose the best loan option for you!
Step 1
Get a "good faith estimate" from your broker or lender. The "good faith estimate" is an industry standard document, which breaks down all of the costs associated with the loan and rate you were offered. The "good faith estimate" is required to be sent to you within 3 business days of your initial application by law. If you don't receive one, the old saying, "buyer beware" comes to mind. By placing the "good faith estimates" from each offer side by side, you will be able to do a breakdown of the costs associated with each loan and make an informative comparison.
Step 2
Find out what criteria the loan officer used to get that rate. All investors have documentation guidelines. Main components such as credit worthiness and the ability to provide income/asset documentation play a factor in quoting a rate. If a loan officer quotes you a rate without looking at your credit report and asking what income and savings documentation you can provide, this should be a red flag! Comparing "apples to apples" includes the type of documentation you will need to provide in order to get the rate offered. Ask the loan officer whether he priced you on a "full documentation" or "stated" program. These components make a difference in the paperwork you will need to provide and the pricing you are offered.
Step 3
Find out if the rate you were quoted is a fixed or adjustable rate. Most loans are typically fixed for 15, 20, 30 and now 40 years! If you are offered an adjustable, you may hear the word "fixed". Make sure you don't get confused. Adjustable products such as 2/28's, 3/27's, and 5/25's may be "fixed" for a set period of time, however, they adjust periodically thereafter. For example, a "2/28" is an adjustable loan, that is "fixed" for the first 2 years, but adjusts after that period. If the loan is an adjustable, find out what index the loan is tied to (COFI, MTA, LIBOR, etc..) and what the predetermined margin is. Remember the Index + Margin = Your fully indexed rate!
Step 4
Make sure you compare loans that have similar characteristics. It does no good to compare one loan that has a prepayment penalty with one that does not. The difference is usually 6 months of interest charged in penalties on a loan, which adds up to thousands of dollars if you make a mistake! Also, make sure you know if the offers have an interest only option on them. Simply looking at the expected payment on a "good faith estimate" will not suffice. One lender may send you a "good faith estimate" with an interest only payment being reflected, but it does no good if your main goal is to pay off the home faster with a fully amortized payment.
Step 5
Finally, thinking "outside the numbers", borrowers must also compare who is making the offer. Questions such as, "Was the loan officer knowledgeable and willing to answer my questions in a clear and straight forward manner?" are very important! Purchasing or refinancing your home is one of the most important decisions you will make in your life. Choosing the right person to work with can make all the difference in having a positive home loan experience!
Scott owns Oak Valley Mortgage in Chico, California. Scott is the 2006 Chairman of the Chico Association of Realtors Affiliate Committee. You can find great home loan information at http://www.oakvalleymortgage.com/ or call Scott at 530-592-8362 for all of your mortgage needs. Free Pre-Approvals!
Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.caloan.com/
"You find the perfect home, we'll find the perfect loan!"
