Saturday, April 18, 2015

7 Surprising Reasons to Refinance Your Los Angeles Mortgage Now

graph and miniature house model

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

Thursday, March 5, 2015

Visual DNA Suggests a New Way to Test Your Credit Worthiness

different types of image that makes a someone a grown up

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

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

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. 

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