| Refinancing Opportunities May Run Out Soon - Now is the chance to refinance your California home loan |
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Real Estate Market Condition in California The economic crisis has brought increasing instability to the Unites States real estate market and the same thing can be said about California. Getting a mortgage for home purchase is seldom troublesome for the buyer due to the increase in value of developed and undeveloped land. California has always been one of the most expensive places to reside in and their properties are always first class. But since the economic crisis caused an uncertainty in the market, the credit slowdown offers a financial benefit for the homeowner to refinance their loan.
Real Estate Market Condition in California The economic crisis has brought increasing instability to the Unites States real estate market and the same thing can be said about California. Getting a mortgage for home purchase is seldom troublesome for the buyer due to the increase in value of developed and undeveloped land. California has always been one of the most expensive places to reside in and their properties are always first class. But since the economic crisis caused an uncertainty in the market, the credit slowdown offers a financial benefit for the homeowner to refinance their loan. Prime Rate at Record Lows While the current economic crisis has brought a drastic fall in the price of homes in California, the Federal Reserve has decreased interest rates to record lows. The so-called "prime rate" is the rate at which banks lend money to each other; the prime rate serves as a basis point for the interest rates of loans available to consumers. As recently as June of 2006, the prime rate was 8.25. The current prime rate is 3.25, the lowest since August of 1955. The phenomenally low interest rates now available represent a once-in-a-lifetime opportunity for the California home owner to refinance their property. This window of opportunity will not last long. While interest rates have fallen steadily over the past two and a half years, this is expected to change. The Current Trend in California Home Sales While home sales in California decreased slightly, less than one per cent, from January to February of 2009, in February 2009 nearly forty-three percent (43%) more homes were sold than in February 2008. Additionally, the ten-month trend of falling home prices came to an end in February. Home equity is on the rise; interest rates are projected to increase as a result of President Barack Obama's economic stimulus. Furthermore, Treasury Secretary Tim Geithner's proposed economic reforms suggest the favorable climate for the home owner to refinance their mortgage is likely to change. A Final Consideration When Refinancing: Flexibility The final reason the savvy California homeowner should refinance their home loan is the opportunity not only to reduce the amount of the monthly mortgage payment, but also to increase the amortization period of the loan itself. While on the surface this may seem unsound financial strategy, the most overlooked consideration of personal financial management is the time value of money. This heightens the time value of money since a lower monthly mortgage gives the home owner a chance to invest in more profitable assets or to simply have more money to spend. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Brandon Roberts is a Certified Mortgage Planning Expert. CMPS mortgage brokers in Temecula specialize in obtaining affordable funding for new homes temecula California, mortgage loan modification and temecula refinance loans online. Brandon is an expert in the Temecula lending community and gladly offers free home mortgage consultations at 951-813-3625 or via email at b.roberts [ @ ]no-surprises-mortgage.com |