Interest Rates for Orange County are at All Time Low's

Interest rates are at all time lows currently.  While many people can't refinance because they have lost too much equity in their home, there are plenty of Orange County home owners with plenty of equity in their home. They are able to take advantage of low rates, provided that can provide all the necessary income and asset documentation that it takes to get a loan these days. There are several programs available for people with little or no equity as well, including Fannie Mae's Home Affordable program, FHA Streamline Refinance program , and VA's Interest Rate Reduction Refinance . The FHA and VA programs do not even require an appraisal, while the Fannie Mae program will allow borrowers to refinance, even if they are at 125% of the properties value. Most Orange County lenders will only allow a refinance up to 105% of the properties value, but that is good enough for most people. Freddie Mac also has a similar program.

Where do the Closing Costs go?

While most mortgages will have closing costs, a No Cost refinance allows the borrower to take a slightly higher interest rate than they would have if they were willing to payment closing costs, and then use "rebate", Service Release Premium", or "Yield Spread", to cover the closing costs. The end result is no increase in the borrowers loan amount. For example, a home owner with a $300,000 home loan may be able refinance to a 4.625% interest rate if they are willing to either pay or finance $3,500 to their loan, ending up with a $303,500 loan amount. Or, they could take a rate of 4.875% and have no closing costs. Their new loan would not increase, remaining at $300,000.  The interesting thing is that the payment difference is minimal. The reason for this is because the payment on  $300,000 at 4.875% is only slightly hgiher than the payment on $303,500 at 4.625%.

The First Step for a Zero Cost Refinance

The first step an Orange County homeowner needs to take to find out if a No Cost Refinance is right for them is to contact a local Orange County home loan expert. A good Lood Officer should be able to quickly prepared customized loan scenarios which will give the details on the options available.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Trust One Mortgage for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

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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

*Trust One Mortgage Corporation is licensed and supervised by the California Department of Real Estate (“DRE”), License # 01087829