The Affordability Gap Apparently the FDIC is finally noticing that housing prices are raising faster than personal incomes. As the article notes, "In California, prices rose 22 percent and incomes 4.8 percent; in Nevada, home prices surged 28 percent while incomes rose 4.7 percent, the FDIC said." This creates a condition where innovative loan products (40 year mortgages, no money down, interest only) are proliferating. As I noted in a previous post, 61% of mortgages in California are interest only. This creates a condition where people are being approved for loan amounts they could not previously qualify for under the assumption they will be able to re-finance or sell their home. The unintended consequence is that people often buy much more house than they can afford, thinking their home will appreciate or they can sell. Another classic quote from the article;

"The FDIC and other banking regulators are studying the correlation between new adjustable-rate mortgage products, including interest-only loans, and higher home prices.

The studies are designed "to understand the extent to which these new credit factors may be contributing to home price growth," said Barbara Ryan, associate director of the FDIC's division of insurance and research."

I don't think it takes a lot of research to find that these two are related. I do find it amusing that they are just now looking into it. Too little, too late. When the gap between incomes and housing prices continues to grow like this, it can only mean long term problems for the real estate and mortgage markets.

Labels: californiahomeprice, californiahousingprices, californiaincomegap, incomegap

  ¶ The Affordability Gap 0 Comments

Housing Bubble Good? Ok the above article at Slate.com seems to indicate that there might be some benefits to the pop of the housing bubble, namely that the housing bubble was the only force for job creation in an incredibly anemic recovery and that without it, we would be much worse off. The examples cited in the article of the dot com boom was the excessive build out of the telecommunications market which resulted in cheaper phone rates. Ok I am not certain how the disappearance of 30 trillion in wealth is worth some 30 billion dollars of telecom build out. Let's go with the premise that the author has developed.

Due to the massive capital investment in basic infrastructure, we now have much cheaper high speed internet, phone bills etc. What does the massive investment in housing buy us? Well according to the article it created a bunch of local jobs (as construction dollars are spent locally) which range across all of the economic spectrum.

But what the author is ignoring is that many many Americans have been using their homes like an everflowing ATM and have been spending the proceeds. Nor does housing build out a huge infrastructure like telecommunications which can be the engine for further growth. Of course if the housing bubble pops, that resulting ripple effects through out the economy are more than likely going to result in yet another recession.

Housing isn't like telecom. We don't get nearly free houses from investing in it.

Labels: bubbles, housingbubble, investing, mortgagebubble, telecombubble

  ¶ Housing Bubble Good? 0 Comments

Negative Amortization Warning MarketWatch has a great article on pitfalls to avoid with negative amortization loans. It discusses terms, interest rate adjustment and other pitfall issues. One important point buried deep in the article. "If you do need to refinance an interest-only or negative-amortization mortgage, you could find yourself owing too much to qualify for a new loan." That's an important thing to remember. Too many people but too much house with the expectation that the house is going to rise in value. As my post Median Home Price in California illustrated, the housing inventory is rising along with a slightly longer time to sell. All of this while interest rates are significantly lower than they were last year. Remember real estate doesn't alway raise in value. Here are the biggest pitfalls noted in the article.

• Does a mortgage have a longer term than the typical 30 years? Despite attractively lower monthly payments, expect to pay more interest over time than you would with a traditional 30-year term.
  
• If an adjustable-rate mortgage has an unusually low teaser rate, your rate could rise even if interest rates drop. In one ad we saw, the 1% advertised rate was effective for exactly one month.
  
• The more frequent the interest-rate adjustment, the faster interest may accumulate if rates rise.
  
• Make certain your lender defines the lifetime rate cap on an adjustable rate mortgage. Is it 5 percentage points over the initial start rate or 5 percentage points over the initial note rate (the mortgage's fully-indexed rate)? Those two lifetime rate caps can be significantly different. Lenders may set lifetime interest-rate caps either way. There also may be a flat-rate lifetime cap, i.e. 10%.
  
• Be certain the mortgage has no prepayment penalty if you expect to refinance.
  
• Don't think it will be easier to qualify for a mortgage just because it has a lower start rate. Lenders set their own qualification standards. It may, for example, be that you must qualify at a higher, fully indexed rate.
  
• "Piggyback loans," or mortgages paired with home-equity loans, typically permit interest-only payments for five or 10 years. After that period, the loan becomes fully amortized -- often for less than the standard 30-year term. So payments on the home-equity-credit-line part of a loan alone can increase dramatically.
  
• Be sure to check mortgages for a trigger that could recast your entire loan. The trigger might be a period, say the end of five years. Or it might be a function of how much negative amortization you have. Example: It could recast if you owe 110% of your loan balance. When this happens, monthly payments could increase
  

Labels: interestonlyloans, negativeamortization, piggybackloans

  ¶ Negative Amortization Warning 0 Comments

61 % of Mortgages in California are interest only. The Tahoe Daily Tribune has rather frightful article. In the article they note that over 61% of mortgages in California in 2005 have been interest only loans. Sorry but that's a clear sign of bubble about to burst. It's especially bad when you consider that in 2002 that number was 8%. Since most of these loans will have the interest rate change in 3 to 5 years, you can almost predict that in the year 2008-2010, there are going to be some very surpised people who will notice that their mortgage payment has doubled. The question remains, will the shortage of homes in California (specifically in the hot areas of Los Angeles, Orange County and San Francisco) keep prices high? If interest rates rise the answer is very clearly, "No." So watch the 30 year fixed rates over the next two years. I am looking forward to the bubble bursting so I can buy CA real estate again. I made plenty on my own California home, I just got out when my home more than doubled in value so I can enjoy the less crowded life here in New Mexico.  ¶ 61 % of Mortgages in California are interest only. 0 Comments

Median Home Price In California California Median Home Price has risen to $522,590. While prices are up, sales are down 2.1% from the same period last. Clearly the concerns about affordability (and the fact that not many middle class people can now afford a home in California). Another interesting trend is the increase in unsold inventory.

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in May 2005 was 2.8 months, compared with 1.6 months (revised) for the same period a year ago.

This is a near doubling in one year, while not surprising, given that prices have shot up. The main engine of demand, low interest rates, no longer appear to be the engine they once were.

Thirty-year fixed mortgage interest rates averaged 5.72 percent during May 2005, compared with 6.27 percent in May 2004, according to Freddie Mac. Adjustable mortgage interest rates averaged 4.23 percent in May 2005 compared with 3.88 percent in May 2004.

Thirty year fixeds are now .54% cheaper than they were are year ago, yet demand is slacking for real estate. As my previous post noted, people are now opting for the security of a fixed interest rate. Given that you are only seeing 1.49% difference as opposed to May 2004 when the difference between an ARM and 30 year fixed was 2.39%. These point to a general slowing of the California real estate market but since supply is so tight, prices haven't fallen yet. Look for more people to be re-financing into fixed rate mortgages as this continues. There will be a great deal of re-finance business for the mortgage brokers.

Labels: fixedrateloans, MedianHomePriceInCalifornia

  ¶ Median Home Price In California 0 Comments

Pacific Mercantile Bank Pacific Mercantile Bank has decided to leave the wholesale mortgage market in California, according to this press release. The reason given is that the bank is going to focus on the commercial lending side of the business. Mortage loans that are still part of the commercial side of the house will be done and they will not be sold on the secondary market.

Why get out when the real estate market is white hot in California? I suspect several things. First banks are being forced to be a lot more creative in terms of financing options. We are seeing 40 year loans, zero interest loans and a whole host of ARMs. This competitive pressure forces a bank on the wholesale side to innovate more and be more flexible in the types of mortgage products produced. For a smaller institution this can be quite difficult as they lack the manpower to market and develop new products. Or it can be a portent of something else; a vendor side stepping the coming California real estate pop.

Labels: 40yearloans, PacificMercantileBank, retaillending, zerointerestloans

  ¶ Pacific Mercantile Bank 0 Comments

Fixed Rate Mortages Looking More Attractive The Ventura County Star notes a new trend in the California Mortgage market, namely that people are beginning to re-fiance those adjustable rate mortages into fixed rate mortgages. Given the fact that 30 year rates are often just a bit more than than there interest only counter parts. The other interesting fact is that the median home price in Ventura County is $667,130. 30 year fixed loans are now about 5.5% while 5/1 ARM might only be 4.25%.

Given the low prices of fixed rate loans, why get an ARM?  ¶ Fixed Rate Mortages Looking More Attractive 0 Comments

New Homes Sales Up - Prices Down The Commerce Department reportedtoday that new home sales rose sharply to the second highest level in recent history. They also reported that the median home prices dropped over 6.5%. The median is the point at which half the homes are sold for less and half for more. What does this mean? Well given the massive number of new homes in the pipe line by home builders, prices of new homes will continue to decline. Since mortgage rates are at an all time low this indicates supply of new homes is exceeding demand, thus dropping prices. The median price of existing homes stayed at roughly $207,000. Expect continued drops in new home prices and the stock of new home builders should decline.  ¶ New Homes Sales Up - Prices Down 0 Comments

Using a Mortgage Broker - The Basics

Introduction

A home loan is a transaction in which you promise to repay money you have borrowed and also give the lender a mortgage on your home to secure repayment. In California, your promise to repay ordinarily is in the form of a promissory note and the mortgage is ordinarily in the form of a deed of trust. You need to make certain that you understand the terms of the loan before you become obligated. Whether you obtain a loan through a mortgage broker, a financial institution or some other lender, you should ask questions about the loan process and paperwork so that you understand the form of the transaction and the terms of the loan before you agree to them.

Using the Services of a Mortgage Broker

A mortgage broker helps you obtain a home loan. A mortgage broker may be licensed by either the California Department of Corporations or the California Department of Real Estate. Mortgage brokers make or arrange first mortgages and junior mortgages. A junior mortgage secures a loan which is secondary or junior to one or more other loans on the property. Some home loans arranged through brokers are very similar to a home loan you might obtain independently from a bank, savings and loan association (S&L), credit union, finance company, or other type of lender. Some brokers offer shorter loan terms and/or different repayment plans.

Prior to using the services of a mortgage broker ensure that you check to make sure they are properly licensed by checking with the California Department of Corporations at http://www.corp.ca.gov or 1-800-347-6995 and/or the California Department of Real Estate at http://www.dre.ca.gov or (916) 227-0931.

The Role of the Mortgage Broker

The mortgage broker is usually an agent for the purpose of arranging the home loan transaction. This relationship imposes a legal duty on the broker to disclose to you the material (important) facts you need to know about the loan. The broker has a duty of fairness and honesty to both you and the lender. These legal duties can be important in resolving disputes which arise after the loan is made, but the best way to avoid problems and disputes is to ask questions and be sure you understand the terms of the loan and each of the loan documents before you sign.

When acting as an agent, the broker speaks for you in submitting your loan application to a lender. Make sure that you give the broker full and accurate information, and that any loan application or other document the broker prepares for your signature is accurate and complete before you sign it. Make sure you understand the terms of the loan before you agree to it.

Mortgage Broker Commissions and Lender Fees

Mortgage broker commissions and lender fees are not usually set by law. Mortgage Brokers are paid either directly by you or by the lender who funds the loan. You may choose to pay the mortgage broker’s commission with:

• Cash (out of pocket) or
  
• Proceeds from the loan (this will increase your loan balance) or
  
• A lenders rebate or service release premium (see definition of lender’s rebate and service release premium below).
  

Compare fees charged by several lenders and mortgage brokers. You may be able to do this with a few phone calls. Ask about the amount of the fees and costs to be paid by you in cash before the loan is funded, the amount of the fees and costs to be paid from the loan proceeds or lender rebates, and the amount of fees and costs to be financed.

What Other Fees Should I Ask About?

The mortgage broker may charge you loan application processing fees. You may incur appraisal and credit inquiry expenses. However, if the mortgage broker asks for payment in advance for any service other than an appraisal or credit inquiry, call the DRE to see if the broker has approval to do so. Closing costs may include charges for document preparation, escrow services, title insurance, notary services, and recording fees. You may also be charged for fire or homeowner’s insurance coverage, optional credit life or disability insurance, or beneficiary statements.

You do not have to buy credit life or disability insurance. Credit life and disability insurance benefits make your mortgage payments if you die or become disabled. Many credit life and disability policies have limitations, called exclusions, that excuse the insurer from paying under a variety of circumstances. Make certain you understand the terms of the policy and what it excludes. You can also secure financial protection from disability or death through standard term life insurance or disability insurance. Before you buy credit life or disability insurance, compare the cost with the cost of a term life or disability policy.

Do My Costs Increase if I Borrow More Money?

Many loan costs and fees are based on the amount of the loan. Usually, the more you borrow, the higher the costs and fees. Also, your costs and fees are limited by law on first mortgages under $30,000 and junior mortgages under $20,000 which are arranged through a broker, licensed by the Department of Real Estate.

An Overview Of The Loan Process

Selecting a mortgage broker or lender – As stated earlier, brokers usually act as your agent with the lender. You can also deal directly with some lenders, without using a mortgage broker. Whichever you choose, ensure that you have checked out the company. Try to use companies that people you know have used and can tell you the level of service provided. Rates should be competitive with other companies. Remember that if the deal sounds to good to be true, it probably is.

The Loan Application – You will have to provide a completed loan application. Some brokers will come out to your home to take the application, you can fill one out yourself, or some brokers have Web sites that allow you to submit the application on-line. You will probably be asked to pay for a credit report and appraisal fee up front. If a broker tells you the credit report and appraisal costs are not being charged to you, make sure to get it in writing. Also verify that you will not pay for these items at the close of escrow out of your loan proceeds or that the broker will not demand payment for the fees, if you do not close the loan. The broker will also require that you submit the required documents that the lender requires in relationship to the loan program you are trying to obtain. Both the broker and lender will provide you with required disclosures regarding the terms of the loan. It is important that you review these disclosures and ensure that the terms meet with your approval.
Processing the Loan – This is the process were the broker obtains the required information and submits it to the lender’s underwriter for loan approval. This is a critical stage in obtaining your loan. Ensure that you respond to all requests for information in a timely manner. This will increase your chances of getting the loan or learning why you don’t qualify. This is also the time you may want to lock in an interest rate. Remember to keep in contact with the broker and to monitor the loan process, ensuring that the broker is meeting the agreed upon time frames.
Closing the Loan – This is the final stage of the loan process. The closing can take place at a title company, escrow company, or the broker’s office. The broker may use a signing service that will bring the documents to you for signing. No matter where the signing takes place, this is the time to ensure the loan terms and costs are what you asked for. Read all documents. Do not let yourself be rushed. If you have questions, ask them and make sure you understand the answers. If the terms and conditions are not what was agreed upon, do not sign the loan documents. Request that the documents be redrawn stating the correct terms.

How Do I Choose a Mortgage Broker and a Loan?

Call lenders and mortgage brokers and ask about interest rates and fees for the size loan you need. Be sure to ask:

• What types of loans are available?
  
• What is the approximate amount you will have to borrow to receive the amount of cash you want? (That is, what amount of fees will be financed and deducted from your loan proceeds?)
  
• Does the lender or mortgage broker offer loans in the dollar amount you need?
  
• How much is the lender’s fee or broker’s commission on this size loan?
  
• What other fees or costs will you be charged and what is the estimated amount of each?
  
• Will you have to pay any fees if the loan is denied?
  
• Will you have to pay any fees if you apply, but then change your mind?
  
• What is the amount of the monthly payments, and the amount of any balloon payment?
  
• Will the loan be fully amortized/paid off by the regular monthly payments?
  
• What is the length of the repayment period/term of the loan? (The more time you have to repay, the lower your payments will be on a fully amortizing loan.)
  
• What is the simple interest rate?
  
  
• Is the interest rate fixed or does it vary over the term of the loan?
  
• What is the Annual Percentage Rate?
  

On an adjustable rate mortgage (ARM), the interest rate — and your monthly payment — may increase with an increase in the index used in your mortgage. In an ARM, the current interest rate is calculated by adding a fixed margin (such as 2%) to an index such as the Cost of Funds Index published by the Federal Home Loan Bank Board. INDEX RATE + MARGIN = MORTGAGE RATE.

For adjustable rate loans, ask the lender or broker:

• How long is the initial interest rate guaranteed?
  
• How often can the interest rate change?
  
• What is the largest monthly payment you could face?
  
• How often can the payments change?
  
• Can the amount you owe increase through negative amortization? (This can happen if your monthly payment is less than monthly interest costs.)
  
• What is the formula that will be used to set the rate?
  
• What would the rate be today if it were set by that formula?
  
• What are the caps on how high/low the interest rate can go?
  
• Is there a cap on how high or low a payment can be adjusted when the interest rate adjusts?
  

A good way to determine how much the fees and costs will be on a loan is to ask each lender or broker two questions: 1) "Approximately how much do I have to pay in cash before the loan is funded?" and 2) "What is the approximate amount of money I will have to borrow to end up with a certain amount of cash?" By comparing the answers you can find out how much you would have to borrow from each source to end up with the same amount of cash paid to you.

Consumer Checklist: The Loan Application

• Accurately report your income, assets and debts.
  
• Never sign a blank application.
  
• Ask for a copy of your signed application.
  
• To avoid delays, promptly provide the information requested by the mortgage broker.
  
• Ask approximately how long it will take to process the application and obtain the loan you are requesting.
  

Using the Mortgage Loan Disclosure Statement

In most cases, a mortgage broker must cause to be delivered to you a Mortgage Loan Disclosure Statement (MLDS) within 3 business days after you complete and present to the mortgage broker a written loan application or before you become obligated to take the loan, whichever is earlier. Ask to receive the statement as soon as possible and read it carefully. It will provide you with the following information about the loan:

• the amount you are borrowing (the principal);
  
• the estimated amount of any costs which are to be financed as part of the principal;
  
• the estimated amount you will pay in fees to get the loan, including commissions to the mortgage broker; and
  
• the estimated amount of money that you will receive from the loan after costs, fees, and commissions have been deducted.
  

Compare the line on the statement showing the amount of the principal with the line stating the amount of cash which will be paid to you. The difference between these two numbers is the amount of fees and costs which will be financed as part of your loan debt.

The statement must also include estimates of the maximum costs of arranging the loan. It must list the estimated amount of each of these fees, if they apply:

• appraisal fee
  
• lender fees
  
• escrow fee
  
• title insurance charge
  
• notary fee
  
• recording fee
  
• credit investigation fee
  
• fire or other hazard insurance premiums
  
• credit life or disability insurance premium
  
• beneficiary statement fees
  
• reconveyance fee (when you are refinancing an existing loan)
  

The disclosure statement should also list any existing loans or liens against the property. If you expect the new loan to pay off a debt, check to be sure that debt is listed.

Be sure to ask for this disclosure statement before you sign the loan papers. You do not become obligated to accept the loan until you sign the loan agreement or promissory note. If the disclosure statement does not describe the terms that you expect or want, don’t sign the loan papers. Any changes from the original terms, cost, or expenses, must be disclosed to you in a timely manner.

If the loan transaction is federally related, you may not receive an MLDS but you should receive a Good Faith Estimate conformed to California disclosures and certain Truth-in-Lending disclosures. These are federal disclosures which together generally provide the same information as the MLDS. (See discussions below regarding RESPA and the Truth-in-Lending Act.) If the broker does not provide the MLDS, he/she must separately advise you of any compensation received or expected from the lender and whether the loan includes a balloon payment.

Get It In Writing

Do not be afraid to ask the mortgage broker or lender to show you where the loan papers describe any particular features of the loan which have been promised to you. If the terms you have been promised are not there, ask the mortgage broker or lender to put them in writing. Promises made only orally may not be enforceable.

Your Rights Under the Federal Truth-in-Lending Act

The Federal Truth-in-Lending Act (TILA) applies if the broker makes the loan with its own funds or arranges the loan for a lender who makes five or more home loans per year. If the TILA applies, the lender must provide you a disclosure before you become obligated which tells you: the identity of the creditor; the amount financed; that you have a right to an itemization of the amount financed; the dollar amount of the finance charge; the finance charge expressed as an annual percentage rate (APR); the number, amount and periods of payments; the total of all payments; any late payment charge; and whether or not there is a charge upon prepayment of the loan principal.

The disclosure statement must also identify the property which is to secure the loan and should tell you whether the terms of the loan permit assumption of the loan by someone buying the property from you.

If the TILA applies, you may have a right to rescind (cancel) the loan within three days after certain events, including the consummation of the loan transaction. When you do not receive proper disclosures about the loan, the right to rescind can last as long as three years from the time you obtain the loan. Any request to rescind the loan should be made in writing.

The TILA right of rescission does not apply to all loans arranged by mortgage brokers, so do not rely on the possibility of later rescission as a substitute for careful study of the loan before you agree to it.

The TILA was amended in 1994 with respect to certain loans, other than purchase money loans, secured by the borrower’s principal dwelling. In these "high rate/high fee" loan transactions, also known as "Section 32" loans, the TILA now places some additional restrictions on creditors, requires more disclosures, and gives borrowers cancellation rights. The amendment defines a creditor as someone who, in any 12-month period, originates more than one high rate/high fee loan. Also, any such loan arranged by a mortgage broker is subject to the new requirements. A high rate loan is one in which the APR exceeds by 10 points or more the yield on Treasury Securities having a similar term. A high fee loan is one in which the total points and fees exceed the greater of 8% of the loan amount or, as of 1-1-00, $451.00 (adjusted annually on January 1 based on the change in the Consumer Price Index). The TILA is enforced by the Federal Trade Commission (FTC). The FTC will answer questions concerning the TILA and high rate/high fee loans.

Signing the Papers: What to Expect

When the time comes to sign the papers, several documents will be presented to you. They will probably include:

1. Promissory Note – In the promissory note, you promise to repay the money borrowed. The note should state the amount you are borrowing, the interest rate, whether and how that interest rate may change, the term or length of the loan, and the amount of any balloon payment.
   
   
2. Deed of Trust – The deed of trust gives the lender a lien on your home. It also gives the lender the right to foreclose on your home if you don’t repay the loan.
   
   
3. Escrow Instructions – The escrow instructions tell the escrow holder how to pay the loan funds. If existing mortgages or other debts are to be paid off by the loan, be sure that the escrow instructions tell the escrow agent to pay off these debts.
   
   
4. Broker Agreement – Read the broker agreement carefully. Does the agreement require you to pay the broker’s fee even if you don’t receive the loan you requested? Make sure the agreement is consistent with what the broker has already told you about your rights and obligations.
   
   
5. Declaration of Oral Disclosures – This is a statement that the broker has orally explained certain terms of the loan to you. Before you sign a paper saying that you have received explanations, make sure that you have received the explanations and that you understand what you have been told.
   
   
6. Mortgage Loan Disclosure Statement – The mortgage broker must give you this statement, which sets forth the loan terms and estimated costs, within 3 business days of receiving your completed written loan application or before you become obligated to complete the loan transaction, whichever is earlier. If liens or debts are to be paid off by the loan, be sure they are listed on the disclosure statement. (In lieu of the MLDS, in a federally related loan transaction you may only receive Truth-in-Lending disclosures and a Good Faith Estimate of costs conformed to California disclosure laws. See "Using the Mortgage Loan Disclosure Statement" above.)
   
   
7. Truth-in-Lending Disclosure Statement – Some, but not all, mortgage brokers must give you Federal Truth-in-Lending Act disclosures about the cost of the loan before you become obligated on the loan.
   

Take your time and read each document carefully.

What Should I Do About a Dispute with the Authorized Servicer?

If you have a disagreement with the authorized servicer about your loan, write a letter to the servicer and keep a copy. State what the problem is and what you wish the servicer to do about it. Be specific. If your payment wasn’t credited, give the account number, amount, date, and number of the check. Do not send your original documents such as canceled checks. Keep all the originals and send copies with your letter. Confirm in writing any telephone conversations with the servicer. If you don’t receive a satisfactory response and the servicer is required to be a licensed real estate broker, you can file a complaint with the Department of Real Estate. Also, Section 6 of RESPA requires the servicer to acknowledge your request within 20 business and must try to resolve the problem within 60 business days. If not you may have certain rights, such as the right to file a civil lawsuit against the servicer.

Mortgage Insurance: Notice to Borrower

Civil Code Section 2954.6 requires that if private mortgage insurance (PMI) is a condition of a loan the lender must notify the borrower whether the borrower has the right to cancel the PMI and, if so, what conditions must be met in order to cancel.

Servicing: Making Your Monthly Payments

It is very important to make all your payments and to make them on time. Your promissory note may include a provision requiring you to pay a late charge for each late payment. For some home loans, the law allows a late charge of up to 10% per installment.

The person who collects your loan payments is often referred to as the authorized servicer. Sometimes this is the mortgage broker.

NOTE: Civil Code Section 2937 requires that if the servicing responsibility for a loan is to be (or has been) transferred, both the current and new servicer must notify the borrower of the change and its effective date.

CALIFORNIA DEPARTMENT OF REAL ESTATE Offices

Principal Office
2201 Broadway
Post Office Box 187000
Sacramento, CA 95818-7000
(916) 227-0864

District Offices
2550 Mariposa Mall, Suite 3070
Fresno, CA 93721
(559) 445-5009

320 W. 4th Street, Suite 350
Los Angeles, CA 90013
(213) 620-2072

1515 Clay Street, Suite 702
Oakland, CA 94612
(510) 622-2552

1350 Front Street, Suite 3064
San Diego, CA 92101
(619) 525-4192

Labels: howtouseamortgagebroker, mortgagebrokerbasics, mortgagebrokerinCalifornia

  ¶ Using a Mortgage Broker - The Basics 0 Comments

First Time Home Buyers in California For a first time home buyer in California, entering the market right now is a daunting task. With mortgage rates at an all time low, home prices are at an all time high. Too often people get interest only loans without being aware that there are a wide variety of options for the first time home buyer. For example the California Housing Finance Authority has a program to determine if you are eligible for a CalHFA loan program. For a simple web based eligibility form, California Housing Finance Agency. Please note that this is not a loan approval but rather a form to determine eligibility. For a list of Approved CalHFA Lenders.

The affordable housing program can make a huge difference for a first time buyer. I always suggest it as a starting point.

Labels: California, firsttimebuyers, newbuyersinCalifornia

  ¶ First Time Home Buyers in California 0 Comments

Initial launch Given the way the California Real Estate market has heated up over the last 5 years, I thought I would start a site to extensively cover changes in the market. So here it is.

Labels: CA, California, CAMortgageNews, Mortgage

  ¶ Initial launch 1 Comments