When people are about to purchase a home, they usually start to look around for a mortgage company. Not too many people are able to write a check when buying a home so they need to finance the purchase of the home. I started out as a loan officer back in 1991. I think that I have alot of experience when it comes to shoping around for a home loan in Sacramento CA. I am going to give as many tips about home loans and mortgages as I can think of. I am also going to give updates to mortgage rates as they change. Mortgage rates can change daily. Loan programs can change weekly now that we have expierenced the mortgage meltdown. If you are looking for a mortgage company in the Sacramento area then this is the website for you.
We saw mortgage rates go up a lot from the beginning of May 2013. They went up a full percent up until the beginning of September. We now have finally seen rates trickle back down the last couple of weeks. You can still get good rates to refinance. Home values have gone up a lot the last 20 months so many people with mortgage insurance can refinance now and get rid of their mortgage insurance monthly payments. Here is a video from the msnbc rate expert.
It is finally happening. Mortgage rates have been going up the last three weeks. They have gone up on average by .4%. Interest rates follow the 10 year note rate. The ten year note rate now is at 2.11% as of May 29th 2013. It was down at 1.70% range on May 1st. You can see that in the month of May that rates have gone up by .4%. We were at historical lows in rates so we should have known that it could not last forever. Rates are still great compared to the last 10 years so you can still get a good refinance rate. Property values have gone up a lot so you might be able to get rid of mortgage insurance and get a good rate. You can call me at 916-261-2381 to see if you can refinance and get rid of mortgage insurance. I can check your home’s value and get you the best rate out there.
I found a good quick article about improving and monitoring your credit score. A person usually needs a 620 credit score or above to get a FHA mortgage. A few lenders will allow a little lower credit score, but the interest rates will be a little higher. It is much better for you to keep your credit score as high as posible. You will save money on fees and get a lower interest rate with a higher credit score. The few times that your credit will not be looked at is with a FHA streamline refinance. I talked about FHA streamline refinances in a prior post. You can call me and I will look at your credit report for free if you want exact tips on how to improve your score if it isnt where it needs to be. Here is the video that talks more about credit scores.
Homeowners can now do a FHA streamline refinance around the Sacramento county. There is a new rule with these refinances if you have a current FHA loan that was originated prior to May 2009. The mortgage insurance costs were cheaper back then so many people could not benefit by refinancing their loan because with the higher monthly cost of the mortgage insurance it didnt make sense to refinance. Now if you loan was originated prior to May 2009 ,you can get the lower monthly mortgage insurance cost plus get the new lower interest rate. This will help many people who dont have equity. You dont have to worry about getting an appraisal when doing an FHA streamline refinance. Now you dont have to worry about how much your home is worth like when you do a normal conventional refinance. Every homeowner who has a FHA loan should contact a mortgage company in Sacramento before interest rates go back up. Here is a video showing you how much you could save per month if you refinanced today.
When an underwriter is trying to determine if you are qualified for a home loan in Sacramento, they look at your debt to income ratios. They take your gross income and divide it by your housing payment plus all debts. I am taking about monthly debt payments like car payment, credit card bills, student loans, etc. Most underwriters do not want your housing ratio to be above 31% of your gross income. They also do not want your total house payment plus monthly credit card payments to be above 41% of your gross income. I have put a caculator here so that you can see what your debt to income ratios are.
Mortgage companies in Sacramento
I hope you called all the mortgage companies in Sacramento at the end of September because if you didnt you missed out on record lows on mortgage rates. The ten year note rate is now up to 2.14%. I was worried that I could’nt see the ten year staying below 2.0% for very long. We were in a new territory when the ten year note rate was below 2.0% so the rate could’nt stay that low for very long. I know some people always wait to see if the rate goes lower but they usually miss out on getting rates at the bottom. You need to remember that mortgage rates follow the ten year note rate. When the rates hit a new bottom the demand picks up for those rates and that causes the rates to go up.
You still have time to get a very very low mortgage rate. We still have amazingly low rates. You can still get a 4.0% 30 year fixed rate and a 3.375% 15 year fixed year mortgage rate. We are only up about a quarter percent higher from end of September’s lows. If you are looking to buy a home in the Sacramento area, it is a good idea to get preapproved for a loan. Our rates should be good for the rest of the year but they are always moving up and down every day. Go ahead and check all the rates of the banks and mortgage lenders in the area and when you have an idea of what the average rates are, please call Gordon at 916-261-2381 to get a loan preapproval. We can get or beat any listed rate from any of the lenders or loan servicers thoughout Sacramento county.
Rates way down for all the mortgage companies in Sacramento
This has been the story of the year for 2011. Just when you think the 10 year note rate can’t down down any lower, it posts another record low today September 22. The ten year note rate ended up at 1.72%. It has been around the 2.0% range the last couple of weeks, and I thought that was the lowest it was going to go. In June the 10 year note rate was 2.80% range and it was above 3.0% prior to that. I remember back in 2003 when the ten year note rate was in the 3 percent range ,and we were experiencing a refinance boom at all the mortgage companies in Sacramento. We would have another refinance boom now if it were not for the fact that many homeowners dont have equity anymore. You see mortgage rates are tied to the 10 year note rate. When the note rate drops so do fixed mortgage rates. A person can get a 30 year fixed rate in the low 4% to high 3% range right now. I never thought I would see rates this low in my lifetime. My grandparents might have seen interest rates this low. I am going to bet that all the mortgage lenders across the country will be getting alot more busier now. If you were thinking of buying a home, you should get off the fence now so that you can lock in these historically low rates. If you want to see if you have enough equity to refinance, you can call Gordon at 916-261-2381 and he will check comparables for you. Remember if you cant get ahold of any of the mortgage lenders in Sacramento because they are too busy then call me.
The ten year note rate has dropped this friday June 24th 2011. It is down to 2.86%. Earlier this year it was in the 3.3% range. This is significant because when the ten year note rate drops then the 15 and 30 year fixed mortgage rates drop also. A drop in the ten year note rate also indicates that our economy will be slowing down also. That is not good news but the good news is that lower interest rates will help home buyers buy homes. It will also help existing homeowners refinance their current mortgages as long as they have some equity. If you ever want to talk about mortgage companies in Sacramento CA and interest rates, please call me at 916-261-2381.