If you are thinking about or are in the process of refinacing your Sonoma County home and you need to ask the current holder of the second deed of trust for a Subrodination agreement, then be forewarned that as of June 31st, they will force you to lower your line amount to a 75% CLTV (combined loan to value). What that will force you to do is to consider the effects of a lowered line amount or may force to pay down the balance of the existing HELOC to the 75% level. Or what most borrowers will do is simply not be able to take advantage of lowering the rate on their first and not complete the refinance.
What makes matters worse is that you and your lender have put in a lot of time into gathering all the information necesary for the first loan. You have also paid upfront for an apprasial($400 to $600) and the lender of the second has had the audacity to ask you to pay a subordination agreement fee of 200$, which by the way is non refundable even though you may not be doing a subordination. Everyone in the process has gone through considerable effort only to find this out at the very end of the process.

And the worst part of the deal is that the new loan typically lowers your rate, thereby reducing your monthly payments. You might even be consolidating some other debt lowering your overall debt burden. By not allowing you to refinace the holder of the second is actually increasing the likelyhood of default on both the first and the second deed of trust. This just doesn’t make any sense. But what does these days in the lending industry.

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Sellers can help Themselves

by Hunt on July 19, 2010

When Sonoma County Sellers consider various ways to sell their house, one thing that should be considered is the carrying back of paper in order to make the deal work. It may sound funny for a Mortgage lender to talk about seller carry backs but it is a really useful tool.

I am not talking about the whole first but say you had a 300,000 dollar house to sell. The buyer can scrape together 35,000. The buyer is looking at a 90% first which carries with it PMI and a higher interest rate that maybe they can’t qualify for. Yes they could look at FHA finaincing but the problem still exists…high debt to income ratios.

The soloution would be for the seller to carry a 10% second, interst only, at a prevailing interest rate for 5 years. It solves the probelm of the high mortgage payment and the Private Mortage insurance. Think about it. It just might save your deal!

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Mortgage Rates at 50 Year Low

July 19, 2010

Mortgage rates have hit a 50 year low but there just aren’t many borrowers that can qualify. It appears that while rates are low, that folks have lost their impetus to buy real estate. May be everyone is on vacation. But in the mean time there are some fabulous deal out there. [...]

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Rates Are Awesome Today!

June 8, 2010

I know, I know…you have heard it before but really…This time they really are the lowest that they have ever been. I can’t think of a better time to buy or refinance. I am so sure they are at the bottom I even locked my own loan yesterday. 30 year conforming fixed [...]

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Rates Rise as Gov’t tries to sell more bonds

March 25, 2010

Spring has Sprung and shortly, there is going to be a buying demand of Sonoma County Real Estate like there is every spring. But two coinciudental things happened yesterday and today that are going to effect that.
It was reported in Money Matters that Santa Rosa Real Estate had the highest appreciation in the [...]

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Home Buyer Tax Credit Deadlines…Time is Running OUT!

March 19, 2010

April 31st marks the last day you can have a property in contract and still qualify for the first time home buyers tax credit of 8,000$. This great gov’t subsidized tax incentive is responsible for a great many of the transactions that have occured the last 6 months. Don’t wait. Get preapproved [...]

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How the Current Appraisal Process could effect your loan

March 3, 2010

The Real Estate Mortgage Apprasial process is really tough on everybody these days. The biggest problem is that as a Sonoma county lender I have seen as much as a 30% decline in some area values over the last 2 years. The perceived “mental equity” makes it tough on sellers to come to [...]

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Lets talk about “best rates”

February 3, 2010

Everyone thinks that the most important part of the loan process is getting the lowest rate.  But if I asked you which was more important to you…getting the lowest rate or the lowest cost of money which would you choose?
The reality is no one gets the lowest rate.  Most people get a competitive rate.  The [...]

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Get Pre Qualified for a Home Loan

February 2, 2010

So you are either already looking for a house or you are just beginning and a realtor just told you to get Pre qualified.  Great Advice!  Getting pre qualified for a home mortgage before you even set out the door to look at houses makes all the sense in the world.  In today’s ever changing financial [...]

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IRS to Outline Changes in Home Buyers Tax Credit Program

December 8, 2009

Revisions include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents.
By Kenneth R. Harney
December 6, 2009
Reporting from Washington
If you’re thinking about applying for the new $6,500 home buyer federal tax credit or the extended $8,000 version, the Internal Revenue Service has just issued its first formal guidelines [...]

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When looking for the best refinance mortgage Sonoma county from the top loan lender santa rosa, the right place to get your santa rosa refinance home mortgage loans if you are a Sonoma County first time buyer for the lowest rate on a Sonoma County mortgage or when it is time to explore a Windsor refinance home mortgage loans, see Hunt Conrad. Call me now at 707-431-9715 or 707-328-1233