Thursday, July 2, 2015

Who Was John Hancock and other Fourth of July Trivia Questions - Take the Test


How many of the following 4th of July trivia questions can you get right?

Answers are at the bottom of the page.

1.    Two of the first five Presidents of the United States died on the same day. Which presidents and what date?

2.    When did the 4th of July become a national holiday:
a.    1776
b.    1812
c.    1901
d.    1938

3.    Is there something written on the back of the Declaration of Independence?
a.    Yes. A treasure map
b.    No. Don't be silly. That was a movie.
c.    Yes. But it is invisible
d.    Yes. Some kind of seal.

4.    Who was John Hancock?

a.    A big time insurance broker in 1776
b.    The President of the Continental Congress
c.    The first signer of the Declaration
d.    All of the above
e.    None of the above
f.    Only b and c

5.    Who signed the Declaration on July 4, 1776?
a.    Nobody
b.    Only John Hancock
c.    All the members of the Continental Congress
d.    Your guess is as good as the historians

While you are visiting our blog, feel free to check out a treasure trove of information about Los Angeles Real Estate and Advice about how to optimize your mortgage experience. Give me a call if I can help in any way.

Here are the answers. Send this URL to friends to see how they do.

Jame Monroe
1.    John Adams, and Thomas Jefferson both died on July 4,1826, the 50th anniversary of the signing. James Monroe also died on the 4th of July, but in 1831.

2. (D) It wasn't until 1938 that the 4th of July became a national holiday.

3. (D) Written upside down at the bottom of the signed document is: "Original Declaration of Independence dated 4th July 1776." It's not known who wrote it or when. Since parchment was usually rolled up during the Revolutionary War years, it's thought this memo served as a label.

4. (F) John Hancock was both the President of the Continental Congress and the first to sign on July 4th.

5. (D)  There is a huge historical dispute about who signed and when. Some say Hancock and one other signed on the 4th, with all the others on August 2nd. Some others say 34 of the 57 signed on the 4th. Yet others say only John Hancock signed that historic day.

Wednesday, May 13, 2015

Five Reasons to Refinance Your Home Mortgage Loan Soon


Mortgage loan rates are creeping up in Los Angeles

The Mortgage Banking Association (MBA) has just released its April 2015 statistics, concluding that credit availability for home mortgages has inched upward again. This is a continuation of a trend that has been ticking ever higher since January of 2015.

On the other hand, mortgage interest rates have followed bonds (which the invariably do) with increase in early May. While this may also reflect mortgage demand which is usually stronger in the go-go home sales months of May - August, it may also be telling us something about the direction of interest rates due to the competition for low interest bonds worldwide. Too many bonds chasing not enough cash will drive up rates.

The question you might ask yourself is this: "Should I refinance my home mortgage now?" Here are five solid reasons to do so.

1.  Lock in historically low interest rates - Even if mortgage rates have moved up .3 over the last couple of weeks, current rates of 3.8 on 30 year fixed loans is not normal, and will likely never happen again soon, if ever, once the Fed decided to tighten credit and increase base rates.

2. To realize optimal cash out - This may be the optimum value on your home for now. While the supply demand curve for residential real estate appears to favor owners for the next few years, there is likely to be at least a short term dip in home prices if interest rates rise by a point or two, back to normal levels. Moreover, prices usually peak in mid summer and drop of in the fall. If you want to get cash out, now may be the best time.

3. To eliminate your mortgage insurance - Whether through FHA or through a private insurance company, you may be paying as much as 1% or more per year to cover premium mortgage insurance. Most private insurance can be eliminated if you reach 80% equity in the home. Some FHA plans don't have this option. But you may be able to refinance the loan to get rid of the FHA premium.

4. To get rid of higher priced debt like credit cards of finance companies - Why would you want to pay 8%, 12.5% or even 23% for borrowed money, when your local mortgage lender will be happy to provide you that money for $3.8%.  If you have even $10,000 in credit card debt at 14%, you are shelling out $1400 per year for that credit line.  Save $1000 a year with a refinance.

5.  Prepare for a time of less or no income - Are you getting ready to retire? You won't likely be able to borrow against your home after your income stops. While for many homeowners, it is wiser to sell the home for cash or downsize to take out cash, for many the best approach is to to refinance the existing home to reduce the interest rate and/or take out cash. With such low rates today, you can generally invest the money at a better return, maybe even much better.

If you are thinking about refinancing your home mortgage, you

The Future of Los Angeles Residential Real Estate - Part 1


Who knew housing would crash in 2007? What's next?

Applaud who you will for the exploding cost of housing from 2000 to 2007, and then blame the same folks for the disaster that followed said explosion. Unscrupulous bankers, brokers, government workers and agencies, and consumers all had a hand in the mess. But none of the excesses would have been possible but for the BIG MYTH of that time: home prices will continue up forever.

The truth about any market is that there is no permanent truth other than change. Whether gold, steal, copper, coffee, stocks, bonds, or real estate, you can count on the reality that at some point the amateurs and pros will both get blindsided. Over the next several weeks, this blog will make the case that Los Angeles, and to a great extent the rest of the US and World, is entering into a period where the most brilliant among us haven't a clue of what to expect. They might pound their chest with bravado about their scientific theories of what the future holds, but the ones who turn out to be right will have done so by blind, or at least almost blind, luck.

Here is a short list of why the future is so unknowable regarding economic trends of any kind.
  1. Population growth in Los Angeles is coming from an aging population. People are living a lot longer. This trend is very likely to increase, not decrease.
  2. Young adults are getting married much later in life, if at all.
  3. We are not replacing the population through childbirth.
  4. Homes built in last 50 years were designed for a family of 5, not 3.
  5. A possible future where a majority work at home.
  6. A shrinking middle class, and increasing upper middle class.
  7. Not enough jobs for two wage earners in many homes.
  8. Possible shrinking population with no low wage jobs for immigrants.
  9. Second industrial revolution completely changing manufacturing and the service sector
  10. Self driving cars making commuting more bearable.
  11. Likely large increase in mortgage rates from historic lows today.
  12. Student loans keeping many out of the housing market.
  13. AirBnB and other similar companies eating up prime residential real estate
  14. Cost of basic goods and services will continue to decrease, creating a rising % of income that will be available to compete for housing. 
  15. The largest wealth transfer in history as baby boomers leave the stage
  16. The middle class moving out of Los Angeles, or even California, in search of cheaper housing and lower taxes in places like Texas or the Carolinas. 
If you'd like to do your own analysis. Go back through the list and see how many of these changes are likely to push prices up, and how many will be pushing prices down. 

Add your voice. What other major factors are likely to shape real estate prices in the future?

Saturday, April 18, 2015

7 Surprising Reasons to Refinance Your Los Angeles Mortgage Now


There are obvious potential benefits to a mortgage refinance in 2015... and not so obvious reasons.

Let's quickly touch on the obvious reasons to refinance:
  • If you can save 1/2% point and plan to stay in the home 3 years, you'll save money
  • To take out cash for another investment, college funds, home improvement, etc.
  • To shorten the term of the loan
  • To reduce your payment
Now, here is the way less obvious list:
  1.  To get rid of mortgage insurance (FHA, PMI). If your home has increased in value since your purchased it, and you now have 20% equity, a refinance can save you the cost of mortgage insurance. In many cases this saves you over $100 a month.
  2. To increase the term of the loan so that you get low interest financing for longer. This will include either cash out and or lower payments, but your goal is to to "borrow" at these crazy rates for longer. 
  3. This may be your last chance to refinance while you have income. If you are close to retirement, you can use the refinance to set up your retirement plan, keeping in mind that you may not be able to refinance in future years regardless of your assets or the equity in the home. 
  4. Getting rid of a "bad" loan. Possibly your current loan is an adjustable with a balloon, or was the result of a loan modification where the benefits are going to run out soon. 
  5. Pre divorce planning. You are considering a divorce. Currently both names are on the loan. Refinance now with only the name of the spouse who will continue with the payments. Easier now than it will be after the divorce.
  6. An old reason that is back in style - Pay of higher interest debt including credit cards, home equity loans, and finance companies.
  7. A combination of the above. No one of these reasons may be enough to move you to action, but consider this list of benefits we found one family received in a single refinance.
  • Go from a 30yr (with 18yrs left) to a 15yr mortgage
  • Drop my interest rate over 2%
  • Lower my monthly payment by $20
  • Get cash back at closing
It costs nothing to discuss your options and potential benefits of a refinance with Bill Rayman. He can advise you as to whether your circumstances, including reasons to refinance, equity in the home, income, and credit score provide you with a potential advantage.  Call Bill at 424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

Friday, March 27, 2015

Spring 2015 Los Angeles Real Estate Market is RED HOT!!


Spring has sprung and there are still no sellers

As we continue to review the Los Angeles and West Los Angeles real estate market, the unmistakable data points one inventory. 56 single family dwellings for sale in Santa Monica, 25 in Culver City, and 5 in Ladera Heights. Virtually all of these are over $1,000,000.  Super hot bedroom communities, Westchester and El Segundo have more listings and some 3 bedroom units in the $700,000 and up range.

As always, as you go inland, you will see better prices, but not necessarily many more total great opportunities for value. One home I am aware of just listed at $100,000 over the highest market estimate for that home.

The good news is that mortgage rates continue to be super low - under 4% for 30 year fixed depending on the qualifications of the buyer. One pundit mentioned the other day that this is good news now, but might cause some reduction in the home value when rates go up in the future. This might be true, but in the West Los Angeles Market there is not going to be increasing supply of single family dwellings. If anything that supply will decrease as some homes are being converted to multi-unit dwellings.

If you are contemplating purchasing a home in West LA, and would like to have a conversation about your options, call Bill Rayman at  424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025


Thursday, March 19, 2015

The Fed's March Move Not Moving the Mortgage Market Much


The Washington Post provides the latest housing statistics. What do they mean?

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average fell to 3.78 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.86 percent a week ago and 4.32 percent a year ago.

The 15-year fixed-rate average dropped to 3.06 percent with an average 0.6 point. It was 3.1 percent a week ago and 3.32 percent a year ago.

Hybrid adjustable rate mortgages were mixed. The five-year ARM average slid to 2.97 percent with an average 0.5 point. It was 3.01 percent a week ago and 3.02 percent a year ago.

The one-year ARM average held steady at 2.46 percent with an average 0.4 point.

“Housing starts dropped 17 percent to a seasonally adjusted pace of 897,000 units, below market expectations,” Len Kiefer, Freddie Mac deputy chief economist, said in a statement. “However, housing permits increased 3 percent in February. As we head into spring, home builders remain positive about home sales in the near future although the NAHB Housing Market Index dropped another [two] points to 53 in March.”

Meanwhile rising interest rates have put the brakes on mortgage applications, according to the latest data from the Mortgage Bankers Association.

The market composite index, a measure of total loan application volume, decreased 3.9 percent. The refinance index fell 5 percent, while the purchase index dropped 2 percent.

The refinance share of mortgage activity accounted for 59 percent of all applications.
The consensus seems to be that the Fed will raise rates later this year. This is likely to be a very modest increase in the Fed rate, and doesn't mean that mortgage rates will increase at all. Mortgage rates are only somewhat influenced by the Fed rate. Supply and demand for mortgage capital and the cost of bonds to underwrite mortgages are more critical to market rates for mortgages.

As noted by The Washington Post, mortgage rates have been moving up and down in a very small range for months, even years. There is no clear evidence that a boom in housing sales is anywhere on the horizon. While a shortage of available properties, and the increases in rental prices continue to drive up housing prices in many markets, it has not taken on boom proportions.

As noted in earlier posts on this blog, this is a good time for you to purchase a home if this is a good time for you to purchase a home. In other words, don't rush out and buy to beat a market trend, and don't stay out of the market to try and take advantage of some future pricing or mortgage interest rate advantage. At this time, it seems unlikely that interest rates will go much lower than these historically low rates, but they also don't seem headed higher. Home prices seem likely to trend higher.

As with all prognostications about any market, as soon as the prediction is made, it could be dead wrong. One things we can be certain of: if you are looking for a mortgage on a home for you and your family, or for investment, we can help you find the very best options for your situation.  Call Bill Rayman at Guaranteed Rate today.  424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

Thursday, March 5, 2015

Visual DNA Suggests a New Way to Test Your Credit Worthiness


Banks won't give you credit based on your credit score. Maybe this test would be better.

A company called Visual DNA claims to have developed a very short test that will give lenders a better indicator of credit worthiness than the current use of Credit Scoring based on your historic use of credit, income, expenses, and such.

The test uses a series of questions like the one above to determine your impulsiveness, conscientiousness, response to crises, and other markers they have determined point to the likelihood you will pay off your debt.

You can take the test here. 

You can read a longer article on the subject here.  The article points out that while you may think it is silly to offer such a test for this purpose, think again. It is already being used in Russia and South Africa for those who have little credit history.

If you are looking for a mortgage, and have the ability to make the payments, but your credit scores aren't what you need, give Bill Rayman a call to discuss how you might potentially resolve that and be able to buy that dream home or condo.  424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

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

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 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


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

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


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


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. 

Wednesday, January 21, 2015

2015 Mortgage Interest Rates Creating Huge Increase in New Applications

Some Who Bought a House in 2013 Can Benefit by Refinancing Now

Could you, should you refinance your current mortgage to take advantage of the amazing low rates that we are seeing in early 2015? Maybe, maybe not. How can you find out if that makes sense or not?  Call a professional mortgage broker who will be only too happy to explain the benefits, or to clearly let you know there is no big savings in your situation. That broker would be Bill Rayman at 424-354-5325

Should you buy a house or income property right now because interest rates are so low? Maybe, Maybe not!  In the video below, Bill explains why low rates alone shouldn't be the driving determinant. However, if you are serious about buying a home or income property, crazy low mortage interest rates and changes in FHA restrictions and rates could make your monthly payments significantly lower.  Call Bill to discuss your options.

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025


Monday, January 19, 2015

How to Get a Mortgage One Day After Bankrupcy, Foreclosure, or Short Sale

Special Mortgages for Special Circumstances 

Bill Rayman explains how it is possible to get a mortgage even if your bankruptcy was finalized yesterday. Not everyone will qualify, but if it can be done, Bill can get it done.  Call him now for help with any special circumstance mortgage. He is an expert at finding markets that banks and other lenders are not able to access.  424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

Friday, January 9, 2015

FHA Becomes Competitive with PMI as Obama Okays Drop in Rates


FHA Fee Drop Will Make Homes More Affordable

ABC News Reports on the changing FHA fee structure as follows:

First-time homebuyers whose home loans are guaranteed by the Federal Housing Administration would benefit from an Obama administration move to lower mortgage insurance premiums.
Under the plan, the housing administration will reduce annual mortgage insurance premiums by 0.5 percent, to .085 percent. The White House says the reduction means new home buyers would pay $900 less a year than they would without the change.
The White House on Wednesday announced the reduction, which will be a centerpiece of President Barack Obama's trip to Phoenix Thursday.
Current homeowners who refinance into an FHA mortgage would also benefit from the change.
Even with the reduction, the new 0.85 percent premium is higher than historic norms. The rate was increased to raise FHA capital reserves which took a hit during the housing crisis.
Meanwhile the private mortgage insurance folks have been undercutting FHA with rates averaging between .5% and 1%. There are other advantages to PMI that sometimes makes it more advantageous to get the private insurance when you qualify.

Check with Bill Rayman about FHA, VA, and PMI when you have less than 20% down. Bill will provide you with clarity about which approach will work best for your specific situation.

Call 424-354-5325

Thursday, January 8, 2015

Mortgages Drop Near Record Lows

What Is A Mortgage Rate? 

A mortgage rate is the interest rate on your home loan. There are many factors that go into deciding what your interest rate will be when securing a mortgage including inflation, the Federal Reserve, the yield on the 10 year treasury note, your credit score and the mortgage company’s specific fees.

How is the Interest Rate Different from the Annual Percentage Rate (APR)?

The interest rate is the rate on the loan itself and does not take into account closing costs. The APR is the interest rate with the closing costs or closing credits accounted in it. The APR provides a more “apple-to-apples” comparison across loans, as long as the same types of costs are included in each home loan.

Why Guaranteed Rate? 

Guaranteed Rate was founded on the idea of making the mortgage process easier while bringing savings to home buyers from application to closing. We really pride ourselves on bringing low mortgage rates and low fees to our customers – after all, the less you spend on your mortgage, the more you can spend on other important things in your life.

By simplifying the mortgage process, we’ve been able to find ways to keep the mortgage rates we offer lower than our competitors. And we’re so sure about our low rates that not only do we post a live comparison of our mortgage rates versus our competitors – we even named our company after it.

If you are ready to get the ball rolling on your property purchase, call Bill Rayman to discuss your situation in detail. Bill is a seasoned mortgage counselor who can show you the options that are open to you. He'll explain that the lowest interest rate may not always be the wisest deal overall. Call right now at  424-354-5325 and ask for Bill.

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025