Over the past 30 days we have seen mortgage interest rates increase quickly. Orange County home owners and home buyers who had been expecting a 30 year fixed rate in the low 4′s are now finding rates in the upper 4′s to 5%.  Still, rates are near historic lows.

FHA and VA Rates for Orange County Homebuyers

FHA and VA  interest rates had been sitting at 4% to 4.25%, depending on a borrowers FICO score and loan amount. (Loan’s over $417,000 tend to have a higher rate – “Jumbo” or “high balance” loan amounts) Now, FHA rates are at 4.75%, with an APR of 5.621. This is still a very low rate, especially considering the FHA loan program only requires a 3.5% down payment.

Will Interest Rates Continue to Increase?

The Fed is doing everything they can to keep mortgage rates low, but there are still outside forces which are having a big effect in rates and the bond market. Issues in Europe (Ireland, Greece, Portugal etc), China’s inflation, favorable economic and jobs reports are all factors in what  is happening with rates right now. The bond market picked up 800 basis point from April to the beginning of November. So far, since mid November, we have lost 400 basis point. So we’ve only lost half of what we gained since April. Depending on how you look at it, we either have another 400 basis points to lose, means rates will go up, or possibly rate will stablize as we head into 2011.

Home Affordability is High in the OC

Despite the increase in rates, home affordability is higher right now than in the past 30 years. A combination of low rates and low home prices and has created a situation where a mortgage payment compares favorably to a rent payment.  The first step in the home buying process is to talk with a local Mortgage Expert. The loan officer whould be able to prepared a “Rent Versus Own” analysis, along with detailed and customized loan scenarios.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Home Loan:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Mortgage interest rates are lower for Orange County home owners than ever before. But how long will this last?

According to Freddie Mac, mortgage rates are at all time low’s. “Freddie Mac said on Thursday that the average rate for 30-year fixed loans sank to 4.69%, from 4.75% last week. That’s the lowest since Freddie Mac began tracking rates in 1971. The previous record of 4.71 was set in December. Rates for 15 year and 5-year mortgages also hit all time lows.”

What is Driving Interest Rates Down for Orange County Home Owners?

A combination of European and worldwide financial instability has lead to a stronger dollar. Inflation has remained in check as well. Bad news is good for interest rates. Fears of a double dip recession and now even the possibility of the Fed beginning another round of Bond purchases are also factoring in lower mortgage rates.

Great Refinance Opportunities for Orange County Home Owners

This has provided Orange County home owners a great opportunity to lower their mortgage payments by refinancing. Even for those Orange County home owners whose homes have depreciated, they can still possibly take advantage of either Fannie Mae’s Home Affordable Refinance for loan to values up to 105%, Freddie Mac’s 105% refinance program, or, for those with an FHA loan, the FHA Streamline Refinance does not require an appraisal at all.

Orange County Homeowners Refinancing with Zero Costs

As interest rates have dropped, many Orange County home owners have taken advantage of a Zero Cost Refinance. A Zero Cost refinance typically will have a slightly higher interest rate, but all nonrecurring closing costs (lender fees, escrow, title, recording, notary, etc) are credited by the lender. This results in an immediate “breakeven” on the refinance.

The first step is to check with a local Orange County home loan company. Talk with one of their experienced loan officers who should be able to prepare custom loan scenarios based on your individual situation. There are many options, including the fully amortizing 15 year fixed.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Home Loan:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Orange County homeowners and homebuyers have noticed over the past 12 months that rates are constantly moving up and down. Just when you think interest rates are going to stay low, an announcement by the Fed, or some event, either good or bad, will push mortgage rates either up or down. It seems that no matter how many analysts you listen to, nobody can really know for sure where rates will be from one day to the next. But there is a science to it, and there are ways to educate yourself to made a wise decision on when to lock a rate. Below is a great video which explains how mortgage rates are determined.

Orange County Mortgage Rates Have Remained Low

Despite the common thinking that mortgage rates would go up after the Fed stopped purchasing Mortgage Backed Securities, the opposite has happened. Rates, after a slight uptick, have improved.  The reasons for the improvement have much to do with what is happening around the world. The struggling European economies, specifically Greece and Portugal, have helped to weaken the Euro and strengthen the dollar. This is helped to improve mortgage rates. Also, conflicts in Israel and Korea are helping to keep rates low. And of course China has continued to purchase our Mortgage Backed Securities. All these things have combined to keep rates low. Just remember, bad news is generally good news for mortgage rates. Hurricanes (not necessarily in Orange County), earthquakes (there we go), floods, and wars are all things that actually can result in lower mortgage rates.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Mortgage:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Mortgage rates have remained low in Orange County through the first two months of 2010. As the deadline approaches for the Federal Reserves Mortgage Backed Securities purchase program, the expectation is that interest rates will increase. But other factors have contributed to keep rates low, including the financial crisis in Greece, which has created demand for the safety of United States treasuries.

There are some experts, such as Bill Gross, portfolio manager for PIMCO’s Total Return Fund, and a bond market guru if there ever was one, who believe the government should remain involved in purchasing Mortgage Backed Securities.

Orange County FHA and VA Rates

FHA and VA interest rates continue to be in the 5% range. Low rates allow Orange County first time home buyers to qualify for a bigger loan, which also means a more expensive home. For example, a $300,000 loan at 5% would have principal and interest payment of $1,610. At 5.5%, the payment is $92 higher at $1,703. In terms of loan amount, the payment difference is equal to a $17,000. By this, I mean that if a home buyer wants to have a $1,610 principal and interest payment but interest rates go up .5%, then the buyer would need to go with a loan amount of approximately $283,000 rather than $300,000.

With interest rates so low, now is the time to act to by a home. The First Time Buyer Tax Credit of $8,000 is set to expire soon. To qualify for the tax credit, a buyer must have a home under contract by April 30, 2010.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Mortgage:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Mortgage interest rates have stayed surprisingly low in Orange County as February has gotten underway. While analysts expect an increase is right around the corner if the Fed carries through with it plan to end the Mortgage Backed Securities purchase program, the MBS market rallied while the stock market suffered.

Orange County FHA and VA Interest Rates

Orange County FHA and VA 30 year fixed interest rates are in the 5% to 5.5% range at a 1 point cost, depending on loan size and FICO score. FHA only requires a 3.5% down payment, while VA is a 100% financing program. The last of the $0 down loan programs.

Orange County Conventional Mortgage Rates

Orange County Conventional 30 year fixed rates are in the 4.75% to 5.25% range, while 15 year fixed rates are in the 4.25% to 4.75% range. There are several factors that affect the interest rate, such as loan amount, loan to value, FICO score, occupancy, condo versus single family residence.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Mortgage:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.

Mortgage rates in Orange County remained low this week, even showing some improvement late in the week.  Helping interest rates were statements from the Fed suggesting the economy is “strengthening” and that interest rates would remain low throughout the year. At the same time the Fed reiterated its stance on ending the Mortgage Backed Securities purchase program on March 31, 2010. The MBSpurchase program has been credited with keeping rates approximately 1% lower than they would be without the program. Considering interest rates have been hovering in the 5% range, this means rates should actually increase after the program ends,  to over 6%.

Expectation for Mortgage Rates Next Week

No matter what the Fed says, analysts and economists will always do their best to interpret the Fed comments. Although the Fed commented that  ”rates will stay low for an extended period”, there is expectation by most analysts that mortgage rates will increase, and even that the Fed may begin to increase rates later this year. Before that happen, there is some hope that the Fed will reverse their decision regarding ending the MBS purchase program. That will remain to be seen.

Orange County First Time Buyers Have 91 days to Take Advantage of Tax Credit

Orange County First Time Home Buyers have until April 30, 2010 to get an accepted offer to purchase a home. They then have until June 30, 2010 to close the transaction. Time is running out quickly. Orange County first time buyers who who wish to take advantage of the $8,000 First Time Home Buyer tax credit need to get serious about buying a home now. With mortgage interest rates low and the tax credit still available, there has not been a better time in many years to purchase a home.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Mortgage:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.

Here we are, January 22 2010, and interest rates are still staying low for Orange County borrowers. Conventional Conforming interest rates have dropped just below 5%, while even FHA and VA rates are staying in the 5% to 5.25% range.

As we get closer to the March 31 expiration date for the Fed Mortgage Backed Securities purchase program, it will be interesting to see what happens with interest rates. The expectation is that rates will go up by 1% by this summer. This is because it is estimated that the MBS purchase program has artificially kept rates down by 1%. Once the program goes away, there will be little to keep rates from going back up.

If Rates go up 1%, How Much will That Effect the Payment on a Mortgage?

As an example, if an Orange County home owner refinances a $100,000 loan to a 5% interest rate, their payment would be $536. The same loan at a 6% rate would carry a payment of $599 per month, or a $63 payment increase. So, using the payment difference of $63 per $100,000, this would mean on a $500,000 loan, the difference in payment would be $315 per month, or $3,780 per year. If that’s not incentive to at least check into whether a refinance makes sense now, rather than later, then you must already have a great interest rate.

Changes to the FHA Loan ProgramWill Also Effect Orange County HomeOwner Payments

HUD announced several changes to FHA loan program that will effect monthly payments. An increase to the Upfront Mortgage Insurance Premium from 1.75% to 2.25% will have some effect, albeit small. Still, there is an extra .5% Mortgage Insurance Premium that will be financed into FHA loans originated after April 5, 2010. This will have an negative effect on the FHA Steamline program, which currently only has a 1.5% UFMIP. That is an extra $2,250 added to the loan on a $300,000 based FHA loan.

VA mortgage interest rates for Orange County borrowers also remain low.

With changes imminent, not is definitely the time to at least check our whether a refinance makes sense.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Mortgage:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.

Mortgage interest rates for Orange County Home Buyers and Home Owners remain low. With much uncertainty about mortgage rates and what will happen in the next few months, Orange County homeowners got a pleasant surprise as Mortgage Backed Securities actually rallied during the week. Rally’s are good. This means investors purchased Mortgage Backed Securities, pushing prices higher. Interest rates go in the opposite direction and dropped.

Interest rates are hovering in the 5% range for the perfect borrower on a 30 year fixed mortgage. Keep in mind that rates vary quite a bit based on credit, equity or down payment, and purpose of the loan. The 15 year fixed rate program was even low, averaging closer to 4.5% for borrowers paying approximately .75 points.

Should Orange County Homeowners Refinance now?

With interest rates so low, now is the time to refinance for those who haven’t already and are eligible. Tightened underwriting guidelines, combined with the drop in property values has prevented many homeowners from taking advantage of low rates. But there are still people who are sitting on the fence who should act quickly. Analysts estimate that if not for the Fed’s Mortgage Backed Securities purchase program, mortgage rates would be at least 1% higher right now. That program is set to end on March 31, 2010. When that happens, interest rates are expected to climb to over 6%. Actually, as we get closer to that date, the market will begin to react in anticipation of that date. There is still an outside chance that the Fed will change their stance and continue the program, but why risk it?

Orange County homeowners who have a 2nd mortgage (fixed or Home Equity Line) should seriously consider combining their loan with their 1st Mortgage. There are reasons why some people may not want to combine their mortgages, but it is worth checking into. Better yet, take a look at combining the loans into a 15 year fixed in the 4.5% to 5% range.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Mortgage:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.