San Diego Mortgage News

California mortgage holders are the best positioned in the nation to better their financial position by taking action with their mortgages. There is no point in leaving money on the table if you can avoid it, so here's a plan of action for almost any CA homeowner.

If your rate is higher than 4.5% percent and you have equity, which in California you most likely do, and have credit problems, try a FHA (Federal Housing Authority) refinance.

FHA does require mortgage insurance, BUT there are no risk-based pricing adjustments like Fannie and Freddie require, PLUS you can refinance up to 96.5 percent of your home's current value. If the APR (Annual Percentage Rate) of a refinance is less than that of your current mortgage, a refinance could put money in your pocket every single month! 

If you don't think a refinance would pay for the cost of itself, try a hybrid ARM (Adjustable Rate Mortgage), which combines a low fixed mortgage interest rate for several years with an adjustable rate. This is ideal for people who live in fast paced markets like Orange County, the Bay Area and Los Angeles. There are three year fixed-rate mortgages with rates under 3 percent, and those fixed for five years at about 3.5 percent. If you're paying over 5 percent now, you'd likely recoup the refinancing costs very quickly.

With nearly 40% of California homeowners paying 6% interest rate or more on their mortgages, clearly there is money being left on the table. This is especially true if you live in fastest recovering markets that include parts of San Diego, Riverside, Sacramento and Stockton.

There are many opportunities for California homeowners to remove their PMI and potentially lower their mortgage interest rates right now. If dramatically lower mortgage payments seems like an interesting prospect, a free consultation with Metro Express could end up putting dollars in your pocket. 

Call Ryan Grant at Metro Express Mortgage today at 619-542-7744 and don’t forget to “Like” Metro Express Mortgage on Facebook.