Tuesday, February 24, 2015

Would You Like to Buy a Home in Santa Monica?


Home values are skyrocketing in Santa Monica


There are just under 90,000 folks living in the city of Santa Monica. Depending on whose statistics you use, there are 25-30 houses for sale at this time. Over the course of the past year, around 15 - 20 sell each month. If you look up the definition of seller's market, you'll see a picture of the this little berg.

Condos and townhouses add a few more possible places to purchase. Zillow says that there are a total of 157 total residential dwellings for sale, so that suggests about 130 attached houses of one kind or another. Amazingly, you can still buy some well located condos for under $500,000. They are also under 700 square feet and feature one bedroom and one bath.

Renting might be an option for you, but unless you are blessed to have a rent controlled apartment (rent control practically started here), you will pay an average of $2800 for a one bedroom unit.

Your trusty reporter is old enough to have lived in a large 1 bedroom on 4th Street, North of Wilshire for just $95 a month.  That would have been 1970.  I looked at, and almost purchased, a 2 bedroom, one bath home in the 900 block of Georgina for $52,500.  But if you've lived on the Westside for any length of time, you have such stories.

The good news regarding Santa Monica real estate has to do with mortgages. Bill Rayman can get you a mortgage for one of these houses or condos at historically low rates. 30 year fixed rates are still under 4% for most loans, and right around 4% for jumbo loans. This means that your $1m mortgage will only set you back $3300 a month in interest, some of which will be tax deductible. You'll pay a total of $4774 on the mortgage plus property tax and insurance.

So if that sounds like a good deal to you, or if you need half that much or twice that much to buy your dream home, give Bill Rayman a call at 424-354-5325. He promises to help you find the very best mortgage product to fit your needs.

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025
424-354-5325
bill.rayman@guaranteedrate.com

https://GuaranteedRate.com/BillRayman

Monday, February 16, 2015

2015 May Be A Great Time to Refinance Your Mortgage and Save

 

Current mortgage interest rates are fantastic

The average 30-year, fixed-rate mortgage costs just 3.75% (Feb 16, 2015); the average 15-year mortgage rate is 3.00%. See today's rate by going to https://www.guaranteedrate.com/billrayman and selecting mortgage rates at the top of the page.

Lowering your interest rate even one point (or even less) means saving thousands of dollars in interest payments over the life of your loan. And saving money on your mortgage is one way to work toward financial security.

You don't necessarily need to read all the details below to determine if refinancing now makes sense to you. The simple and free way to know for sure is to give Bill Rayman a call. If possible grab your mortgage so that you can give Bill a couple of pieces of information about your current loan. You can reach Bill at 424-354-5325. If he isn't in, he will call you back same day.

If you want to do a quick analysis, consider the following elements.

Refinance if you can shave a percentage point off your mortgage rate

 
The 1% rule is still a good rule of thumb to follow when deciding whether it makes sense to refinance, but in this environment, you may find it financially beneficial to refinance if you can save half that amount.

Let's say your home loan rate is about 4.75%. Refinance with current interest rates and you'll reduce your monthly payments by about $60 a month for every $100,000 you borrow. So if you have a typical Southern California Mortgage of $250,000, you will be saving $150 a month, which is $1800 a year or $54,000 over the course of 30 years. Half of that would still be a great deal depending on other circumstances.


Refinance if you can reduce or eliminate mortgage insurance


FHA rates have just dropped by .4% or more, and that has resulted in similar drops in private mortgage insurance (PMI). This means that you might be able to save enough in mortgage insurance alone to justify refinancing. But if you can save .4% on FHA or PMI and another .5% on your rate, that will generally be a fantastic deal.

Here is a detailed post on the changes in mortgage insurance and FHA.

Keep in mind that many other issues will effect the final numbers such as your credit score, income, home value, equity, and more. It costs nothing to ask Bill Rayman to evaluate your situation and offer you options that might lead to savings of many thousands of dollars per year. 424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

424-354-5325

bill.rayman@guaranteedrate.com
https://GuaranteedRate.com/BillRayman

Do You Have an FHA Financed Home? Refinance Now and Save Hundreds of Dollars per Month

 

Major savings possible as FHA and PMI rates drop


If you bought a house or refinanced a mortgage since 2011 using FHA, Listen Up! You can save a boatload of money by refinancing now. The FHA rate over the last 4 years has been a minimum 1.15% and as high as 1.5% depending on your credit. That rate has just dropped by about .4%. On a $300,000 loan that would be a savings of $1,200 per year if you were to refinance. Depending on the basic interest rate on the loan, the savings could be even higher. MUCH HIGHER!

You could save $150,000 on a $300,000 loan!


Moreover, if you now qualify for PMI (private mortgage insurance) you can save more now and pay no premiums later in the mortgage. You see, the folks who sell PMI have to compete with the FHA insurance. They charge less, but have tighter restrictions on who they will insure. But the critical difference today is that PMI can be stopped when you have 22% equity in your house. 

Here is an example. Possibly you purchased a home for $310,000 in 2013 at 4.35% interest and 1.15% on an FHA insurance policy. You only put down $10,000, so had a $300,000 mortgage. Your combined interest and FHA would be approximately 5.5% of the $300,000 or $16,500 per year ($1375 per month.) Possibly that home has gone up in value to $380,000. If so, you would be able to refinance for $300,000 but now have over 20% equity. This would mean no FHA and no PMI would be needed. Moreover, at today's interest rates, you might also save .6% on interest alone. This could add up to savings of $5250 per year or $437.50 per month...for the life of the loan. That would be a savings of over $150,000.


If you change to PMI, you still save!


Not every home has gone up by 20% over the last two years. But most homes have gone up. Maybe your credit rating has improved also. By refinancing now, you may be able to either lower your FHA rate to the current levels and save at least .4% or you may be able to switch to PMI and save even more. Add this to any savings in the underlying interest rate and you still may be saving 1% or more. On that same $300,000 loan that could be $250 per month every month.

In addition, you may not realize that the FHA insurance you are paying may be for THE LIFE OF THE LOAN! Starting in 2013, FHA does not allow the homeowner to eliminate the insurance when the loan to value ratio is 78%. PMI is almost always for a much shorter period. By refinancing, you can eliminate that extra cost that will continue for up to 30 years. But if you MISS THIS LOW INTEREST RATE window, it may not be possible to refinance. You need to act right now.

 

ACT NOW! Interest rates will not stay this low forever.


It won't cost you a single red cent to call and find out what your options are. Call Bill Rayman at Guaranteed Rate today to learn more about this amazing opportunity.

Wednesday, February 11, 2015

Making $100,000 per Year Family Income in Los Angeles? Why Are You Renting?

 

Income needed to purchase median LA area home same as income needed to rent median LA apartment

As commonly happens, the Los Angeles residential real estate market is totally out of step with the rest of the US. Specifically, the amount of income necessary to "afford" the median area rental unit is $97,000 per year (family income). Afford means that only 1/3 of your income goes toward the rental. This disparity has resulted in many families in this market paying 50% or more of their income for housing.

What is much more interesting is this: A family with $100,000 in income can afford the media priced home in Los Angeles. Why would they continue to rent if they can own?



One reason may be the continued low inventory of homes on the market. With many homeowners having no interest in moving, there just aren't enough listings to get the growing group of potential, qualified buyers to spend the time and effort necessary to get a home. The problem is clearly illustrated in the chart above. In February of 2015, the number is only up slightly to 14,340. Many of these homes are not highly desirable, as the desirable homes are getting multiple offers and moving off the market quickly.

For instance, here is a Zillow shot of homes for sale South of the 10 Fwy from Culver City to Vermont. These homes are affordable, though not in great neighborhoods. Notice how few are for sales in that huge area.


The choice becomes to rent, but the number of rental units is also low. This drives up the cost to rent. Ultimately the solution for many is to move way outside the area. This may result in expensive and time consuming commutes.

For many who have that $100,000 and up income, and who plan to stay in Los Angeles, taking the time to buy in this low interest rate time is likely to be the best solution. If that's you, and you need a great team to help you get into a new home, give mortgage broker Bill Rayman a call. He has a group of real estate professionals who he can recommend to help you every step of the way. Bill can help you figure out the best deal on a mortgage, and help you with the details. Call now at 424-354-5325

12121 Wilshire Blvd
Suite 350
LA CA 90025

bill.rayman@guaranteedrate.com
https://GuaranteedRate.com/BillRayman

Tuesday, February 3, 2015

2015 Mortgage Market - Is It Easier to Get a Mortgage in 2015?

In early 2015, the answer is yes. It is easier to get a mortgage right now!





Bill Rayman is a mortgage broker, lender and counselor. If you are trying to figure out whether this is a good time to buy, refinance, or have other questions about mortgages, Bill is only too happy to help you figure those things out.  In this video he gives an update about market conditions for mortgage loans as we enter 2015.

Call Bill for a no cost, no obligation discussion of your needs  424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

424-354-5325

bill.rayman@guaranteedrate.com
https://GuaranteedRate.com/BillRayman

Thursday, January 29, 2015

No Doc Loans Are Back - But Very Different in 2015

Is Your Income Hard to Verify or Go Through Huge Ups and Downs?


In 2006 just about anybody could get a no doc loan. All you had to do was say cross my heart, and some lenders were only too happy to get you signed up. The 2008 wake up call stopped that ideas cold, but went too far. For many years, otherwise qualified borrowers were locked out of the market because their true financial position was not obvious or because their income fluctuated year-to-year because of the profession or craft they were in.

Bill Rayman explains in this video how the mortgage market has softened a bit for good borrowers who need the stated income approach.



If this is about you, give Bill a call.  He can help you determine if a no doc loan is the right approach for you.  Call 424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

424-354-5325

bill.rayman@guaranteedrate.com
https://GuaranteedRate.com/BillRayman

Tuesday, January 27, 2015

Should I Pay Half a Mortgage Payment Every Two Weeks?

What are the benefits, if any, of bi-weekly mortgage payments

Bill Rayman is on a quest. He is hoping to make everyone an expert at mortgages. He knows that the more you know about the mortgage industry, the more likely you are to use him to research your loan to insure you get the very best deal for your circumstances. 

One approach some financial professional suggest for paying off your mortgage early is the bi-weekly payment idea. If you have a $1500 per month payment, you just pay $750 every two weeks instead of $1500 once per month. This will result in an extra $1500 being paid towards the principle each year.

Should you do it.  Here's a short video with pros and cons.

Call Bill if you have any questions about mortgages. 
424-354-5325