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October 29, 2012

Orange County Homeowners Seeking Cash Loans

Category: California Home Loans,Published Articles – admin – 3:37 pm

Most applicants are unaware that only a few mortgage companies are offering home equity loans. Just a few years back, nearly every loan company was offering a wide variety of 2nd mortgages. It was very common for new home buyers to use a home equity line of credit to by-pass the mortgage insurance requirements for borrowers that had less than a 20% down-payment. With a huge a default rate on these 80-20 loans and the high LTV loans that were consistently delinquent it made it easy for banks to put their home equity products on hold. With Orange County mortgage rates falling to their lowest point of the year, many local residents have been inquiring about 2nd mortgage liens and cash out refinancing because the money is cheap.

Is it getting easier to qualify for a home equity loan in Orange County? Yes and No. Not that many banks or credit unions are offering any substantial home equity programs of late. However, more borrowers are becoming eligible because home prices are rising slightly. There are no banks offering upside-down loans to borrowers that would exceed the 100% LTV plateau.

According to the O.C. Register, “A small fraction of banks are actually reporting they’re seeing stronger demands for home equity lines of credit over the last 3 months,’’ says Keith Leggett, vice president and senior economist at the American Bankers Association. “The home equity lenders are still going to be cautious, but the fact that you are seeing lenders actually tip toe back into that water is an indication that the housing market has probably stabilized and is actually beginning to recover,” he says. “Lenders would not be going into this market if they viewed (that) housing prices were scheduled to drop further.”

ComericA bank reports a recent surge in HELOC applications in Orange County. The bank had a 55% rise in applications for them as of mid-October this year compared with the full year 2011 and a 36% increase in money taken out by borrowers, bank spokeswoman Nancy Tovar Huxen said. There was a 74% jump in equity loan applications in September year to date over the same period ending September 2011, and a 68% increase in cash taken out.

According to Orange County mortgage brokers, in most cases, borrowers need at least a 720 credit score, at least 20% equity in the property, and income documentation that proves stability. And home equity lines of credit don’t come cheap: Average fixed interest rates were 6.68 % as of October 5th, down from 7.06% a year ago, according to HSH Associates, which collects data on the mortgage market. Read the original article from the OC Register.


August 11, 2010

California Home Loan Rates Decline

Nationwide reported that San Diego mortgage rates remained at record lows for new home buying and refinancing.   From Oceanside to Chula Vista, San Diego loan applicants continued to see significant home financing opportunities because of the low interest rates that were available locally to qualified borrowers.  Nationwide published a report indicating that 30-year fixed California mortgage rates ranged from 4.32% to 5%.  Southern California home loan rates continue to rescue many homeowners from rising adjustable rates and mortgage payments that many homeowners could no longer afford.

Lenders APR Rates
National Average 4.894% 4.75%
Wells Fargo 4.848% 4.75%
Nationwide Mortgage 4.615% 4.5%

Apparently VA mortgage rates were available at 4.125% for fixed loan terms.  And for those borrowers who were comfortable with an interest rate only fixed for 5 years (5/1 ARM), California FHA loans could be found at 3.75% for qualified loan applicants.