"Wouldn't Have Nothing if We didn't Have You!"

Monster's University, Disney's sequel to Monster's Inc. is currently trending. We deemed it apt to background the birthday video of one of our dear loan officers with this theme song that says it all "Wouldn't Have Nothing if We didn't Have You!"

Happy Birthday Aaron Anvaripour!

"Wouldn't Have Nothing if We Didn't Have You"

Monster's University, Disney's sequel to Monster's Inc. is currently trending. We deemed it apt to background the birthday video of one of our dear loan officers with this theme song that says it all "Wouldn't Have Nothing if We didn't Have You!"

Happy Birthday Aaron Anvaripour!

RMC & MRE Partner in Lending Free Consultation to the Nursing Community

Thursday, March 21, Redondo Mortgage Center’s (RMC) Sr. Loan Officer Aaron Anvaripour and Merit Real Estate’s (MRE) Agent Paul Cambron, jointly attended a nurse expo upon the invitation of Gannett Group to assist the nursing community in their homebuying and refinancing needs. The free consultation aimed to educate and guide nurses in their pursuit of homeownership.

PRESS RELEASE

By Redondo Mortgage Center

Media Contact: Mara M. Gaborro

mara@redondomortgage.com

310-318-8999

www.redondomortgage.com

What Homeowners are Doing with Their Refi Savings

Reposted from Yahoo Homes, an article by Paul O'Donnell of CNBC.com: http://homes.yahoo.com/news/what-homeowners-are-doing-with-their-refi-savings-201641649.html

Refinancing homeowners dropped their interest rate an average 1.8 points last quarter, according to numbers released recently by Freddie Mac, as borrowers took advantage of November's record-low interest rates on mortgage loans. That 33 percent savings is the largest since Freddie Mac began keeping records 27 years ago.

At the same time, refinancers took relatively little cash out of their refinance. Nationally, Americans cashed out just $8.1 billion in the fourth quarter, down from the high of $84 billion in spring 2006, at the height of the real-estate boom.

That means most who refinanced dropped their monthly payment along with their interest rate. "On a $200,000 loan, that translates into saving about $3,600 in interest during the next 12 months," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Not everyone is choosing to lower their payment, however. Many borrowers are taking their gains in time, shortening the term of their new mortgages to 15 years and keeping their monthly payment steady, or even paying a little more. Last quarter, nearly 30 percent of refinancers switched from 30-year to 15-year mortgages.


The charge into 15-year mortgages comes as many baby boomers look to pay off their homes in time for their retirement. "If you're a boomer and looking to own your home free and clear around the time you want to retire, these record-low interest rates are providing a great opportunity," said Chad Wandler, a Freddie Mac spokesperson.

That trend, and the low numbers of those taking cash out of a refinance, seems to indicate that Americans are using low interest rates and the recent rise in home values to consolidate their chief investment's gains, rather than spend them.

"Most people don't have equity to take out," Greg McBride, senior economic analyst for Bankrate.com, pointed out. After years of recession and shaky economic recovery, "Americans are in the mode of deleveraging."

McBride said: "For a lot of people, the prudent move may be to make lower payments and use the extra money to max out their IRA contribution, or pay down higher-cost debt."

But Freddie Mac's statistics suggest that homeowners are taking equity out of their homes when they can. The cash-out numbers may be deflated by the fact that many refinances were completed under the federally sponsored HARP program, which gives banks incentives to refinance mortgages with minimal fees, but doesn't allow the homeowner to take out cash.


And where home prices stayed more buoyant through the recession and have snapped back faster, the cash-out figures are higher. Around Detroit, where the housing market suffered steep declines in recent years, borrowers took out equity in only 7 percent of mortgage refinances last quarter, while in the more prosperous Boston market, they cashed out 19 percent of the time.

The recent rise in home-equity loans, too, is evidence that what homeowners are saving on their monthly payments may be going back into house-related debt. While much of this money may be going into improvements, it's a sign that the bubble has changed little about how we bank on the places we live in.

A Window of Opportunity

Mortgage Insurance (MI) for FHA is increasing beginning April 1, 2013. This means that it will be less affordable for first-time homebuyers to afford a new home. Since Redondo Mortgage Center is founded on the principle of helping families own homes, we have sourced out new programs that can assist buyers that fit into the first-time homebuyer category under a similar FHA structure.

Starting Monday, March 18, we will be able to offer first-time homebuyers with limited down payment options, to be able to purchase with just a 3% down payment. The good news is, MI for this program can be financed! What’s more, this program is a conventional loan, meaning, qualifications are less stringent and there are more chances for borrowers to qualify. 

Starter homes such as condominiums and townhomes need not undergo the FHA scrutiny that usually causes challenges and delays to purchase transactions. Aside from the comparable low down payment  this conventional program offers, the prequalification document RMC issues for you to make an offer, will reflect a financing that is conventional—meaning real estate agents are aware that facilitation for the loan file will not be based on several more conditions prior to closing—More chances for you to get an acceptance.

While the FHA program at 3.5% down payment may still be best for a certain profile of buyers,  It may be worth your while to explore its conventional program counterpart. Call RMC now for more details and we will be more than happy to take you through all your financing options.

Our loan officers may be reached at 310-318-899 or visit www.redondomortgage.com and go to the “Quick Apply” tab.

You Deserve to Own a Home

Buy a Home with 3% Down Payment!

Conventional program

Not an FHA loan

720 minimum FICO

Buy a single-family residence or condo

Owner-occupied: primary residence

*Following is an example based on a 3% Down Payment:  With a $400,000 purchase price, loan amount is $388,000. For a 30-year fixed, monthly payment is $1,742 (principal & interest). Rate 3.5% APR 3.827%. Qualification is based on income, credit, completed application and submission of required documents. RMC has been helping Southbay’s workforce own homes for nearly 25 years. Ask about our other refinance and investment property programs.

Adjustments and Adapting

So today we spring forward! One hour taken away! If it were I alone, one hour would have not been a big deal. Unfortunately, I have two children at the peak of their hyper-mode to tuck in an hour earlier. I also have a husband to prompt to turn off the video game before his gaming curfew.

Thankfully, I am not as woozy as my sleep-deprived brood. Dragging my seven-year old out of bed is always an exercise and changing a one-year old’s strong- whiffed diaper are enough to wake any zombie up! Plus two cups of coffee helps!

So we all went on our ways this Monday morning, school, playschool, and work. The adjustment was a hump, but we got back on track. Change is not easy—for a one-year old, a seven-year old, a 38-year old, nor a 42-year old, but humans are instinctively trained to adapt.

Another kind of change is a good change. The things that positively affect our lives. A new job, a new home, a new car. These are changes we look forward to and even though it takes adjustments, we don’t really complain. We get excited with a new job even though we have to drive more miles to get to it. We overlook the hassle of moving when we know a new home is waiting. We don’t mind paying a higher lease amount for a newer car model.

A Wiseman once said, “A journey of a thousand miles begins with a single step.” Lao Tzu is right. If we can bring ourselves to initiate changes for the better, a small step is a start. Take for instance considering investing in a home instead of renting an apartment. That monthly rent budget could already be building you an equity in a home that you are owning. Or if you already are paying mortgage, a lower monthly mortgage payment could be a good change. Have you explored refinancing into a lower rate? These are some of the changes that positively impact us and will not make us cringe to undertake—such as it did today when we lost an hour’s worth of sleep.

Adjustments and adaptation go hand in hand. Drastic or trivial, we either just need to get over the hump and move on, or initiate that positive move by beginning with a single step.

For information about homebuying or refinancing, call us at 310-318-8999 or visit www.redondomortgage.com