4/02/2013

Is Refinancing Worthwhile?


How do I know if it is worthwhile to refinance my loan?
I owe $ 110000.00 On my first at 6.375% 30 year (payment $ 686.24) and $55000 at 6.95% 15 year ( payment $ 492.81) on my second. This is a second home worth about $550000. I want to get rid of the second HELOC and get the payment down. My FICO score is around 760 the property is in Laguna Niguel, California

 CAROLINE GERARDO
NMLS #324982  W J Bradley Mortgage Capital LLC. 
20341 SW BIRCH STREET # 330     Newport Beach, California 92660
(949) 784-9699
http://mywjb.com/caroline-gerardo/

Mortgage amount: $
Mortgage term: years or months Interest rate: % per year Mortgage start date:
Monthly Payments: $


Verse existing payments of $1179.73

Because you want to consolidate your second in to a lower first, the refinance is considered cash out. While lenders have gotten more conservative about cash-out refinances, owning your second home with low loan to value at $550,000 -- especially with your credit score – a make sense decision for our Underwriters.

The downside of a first mortgage refinance is the higher closing costs associated with that mortgage. The national average for closing costs on a $200,000 loan in 2012 was $2590.  Besides lowering your payment, you should definitely look at a shorter-term mortgage, like a 15-year fixed-rate mortgage, so you don't end up spending a ton of money on interest by extending out to 30 years. As I write this, W J Bradley's national average for a 15-year fixed-rate mortgage is 2.875% percent or 2.911% APR

The interest rate differential between a new 15-year fixed-rate mortgage and your existing 6.375 percent mortgage on your second home should give you enough of a reduction in interest expense to justify the refinance on its own.

Even if you decide to refinance thirty years, the payment is going to reduce $ 391.99 per month. We can close a refinance in less than twenty nine days, let's save you some money.



 

3/30/2013

Sunset


2010-08-06 22.07.23

Tomorrow is Easter Sunday, and though it is foggy now at my house in Monarch Beach California, the sunset was beautiful. Here in paradise there were few open houses and only the grocery store was busy. The photograph above is one of a few I will share from a trip to Africa. I love the ten minutes as the sun goes down, when we all ought to say a prayer and be thankful. Happy Easter tomorrow or Passover, I'm busy cooking for my crew tomorrow.

Caroline Gerardo

3/29/2013

Mortgage Rates Steady

American Flag in Monarch Beach, California
 
Cheeta on termite mound watching the market?

Pride of Lions
 
  • Mortgage rates push slightly higher today. The trading session for bond markets including Mortgage backed securities, closed early on Thursday in honor of today’s Good Friday holiday. Although I’m Catholic, I wonder how a religious holiday stops business nationwide. Today fundings and wires are closed early, despite the fact that it is end of the month which is typically the busiest day for home loan closings. Assume all bond traders have left the building and are relaxing in their second home in the Hamptons. I have three loans to close this morning and hope their dreams of moving into houses in Dana Point, Newport Coast and Newport Beach do happen over the Easter weekend.
  • Though there is political bad news in play, none of the worries about run on banks in Cyprus bailout seem to shake and tremble the ten year bond traders. Trading levels rocked back and forth all day yesterday. Best executions on interest rates (with one point) for 30yr Fixed loans hover at 3.625% with the minor weakness being seen in the form of moderately higher borrowing costs. Normally before a three day weekend traders would raise rates, increase margins and protect the igloo to be able to get out of town safely for the holiday. Still there are worries about the economics in Italy and the EU.  A lion or a cheeta lurking on the savannah?
 
  • Mortgage rates remain low. More money and lenders are jumping into Jumbo and Super Jumbo ARMS with interest only payments and even qualify without taxes for the self -employed (of course priced for that risk)
  • CONFORMING LOAN RATES THIS MORNING:
  • Rates change all the time, this is not an offer to lend you money
  • 30YR FIXED - 3.75% (APR 3.811), 3.625 % (APR 3.789) coming back into view
  • FHA/VA - 3.375 (APR 3.499)
  • 15 YEAR FIXED - 3.00% (APR 3.129) coming back into view.
  • 5 YEAR ARMS - 2.625 (APR 2.713)
  • Of course there are pricing adds for: FICO, property type, time period for lock, loan to value, use, dollar amount, and the proverbial kitchen sink.


Lock/Float Worries for April and May 2013

  • Rates are moderately higher but consistently since hitting their all-time lows in September and October 2012.

Other factors that prevent mortgage loans from sliding back to lower numbers are worldwide concerns about the EU bailouts and still high unemployment. We aren’t out of the woods with those ugly monkeys Toto, not yet.

Though some would wish we were Japanese mortgage rates of recent history (less than 2%) with that comes great sacrifice for the whole. California appears to be miraculously recovering in coastal areas, with values rising. Still there are homeless families on the corner near my house in Monarch Beach with a cardboard sign about their financial troubles. We live in such a beautiful community it is difficult to think about those who are facing hardships this Easter.

I predict we will see another rate dip around Halloween 2013, perhaps triggered by some newly promoted news. It seems the story of the day is interpreted into code that traders take or leave depending on who will profit. I don’t mean to sound jaded.

What does that mean for the individual purchasing a home in Orange County California? Rates are still great, you may not hit the perfect day in the perfect moment but an eighth or a sixteenth isn’t going to break the debt to income ratio and fail your plans. My advice, don’t pay a fortune for your loan, just in case we see a dip again in October. Steady course, keep your credit on track and budget...

Keeping you in my thoughts and prayers for a Happy Easter, a joyful Passover and hopefully low tide will bring good fortune to you.

Laguna Beach Surf California, low tide
HUD House Equal Housing Opportunity

3/28/2013

Cheap Home Green Maintenance Orange County


 

Sunflowers in my Home
A Dozen Cheap HOME Green Maintenance Tips for Your Orange County Home

1.     Used coffee grounds I save the grounds from my coffee to use in the following situations: battles against ants that don’t care for the acid. Ground can be added to compost, in pots as mulch, around the perimeter of your foundation. If you don’t drink coffee, Peet’s or Starbucks coffee houses in Newport Beach, Laguna Beach ect will be happy to give you a couple pounds for free. Supply them with some plastic container, even a plastic trash bag and offer to save them from walking out to the dumpster.

2.    Used pool filter Diatomaceous earth also known as D.E., diatomite, or kieselgur/kieselguhr, is a naturally occurring rock that feels like pumice, it also comes in food grade This fabulous substance is used in swimming pools to catch dirt and bacteria. Snails and ants hate it because it cuts the gentle tissues of these creatures. If you don’t have a pool, ask your neighbor or a local pool man to rinse out those filters on your lawn or throw some of it in a plastic bag for you. This can also be sprinkled around the perimeter of your home and garden to keep away pests, snails and slugs. It must be re-applied as it tends to get washed into your soil. I don’t advise you place in dog or pet sleeping areas as it has a rough feeling to the sand. With so many homes that have pools in Orange County California it should be easy to get a bag of this free.

3.    Plant a lemon tree – put it in a pot and do not overwater. Lemon juice is useful in many ways. Lemon juice removes stains, irritates ants, has a deodorizing quality and is wonderful to make lemonade. I have two types: a Meyer and a Bearrs Lemon. It is nice to have different types to bear fruit at different times.

4.    Start a compost pile  Layer grass clippings, only vegetable cuttings, nothing with rust or pest spores, nothing that has animal or oil products

5.    Four products to clean everything: vinegar, borax, dawn soap, peroxide

6.    Remove firewood stored near the home. Firewood should be stored at least 18 inches off the ground at least 2 feet from the structure. Putting firewood near your foundation is a welcome sign for spiders, ants, termites and mice.

7.    Check your gas- and battery-powered lawn equipment to make sure it is ready for summer use. Clean equipment and sharp cutting blades will make yard work easier Set the lawnmower to 4 inches high, your grass is stressed by giving it a short haircut. Water the grass less and allow it to force the roots to search deeper. Once a week is enough in coastal Orange County, let it look dry wilted then water. Don’t use pesticides or herbicides on grass. Welcome birds by putting out some millet or sunflower black oil seeds (“oilers”) have very thin shells, easy for virtually all seed-eating. Don’t put out a huge portion, the purpose is to entice them to eat the bugs and grubs in your grass.

8.    Change your filters every season and once a month in the summer. Find a heating and cooling contractor clean to service the outside unit of the air conditioning system. Clean coils operate more efficiently, and an annual service call will keep the system working at peak performance levels. I can recommend a couple contractors who are fair in Orange County serving from Huntington Beach, Newport Beach, Laguna Beach, Laguna Niguel and as far south as San Diego. And speaking of filters, the filter in the hood of your kitchen range, run it in the dishwasher and grease is gone.
Photograph shows a simple use of old pumpkin peel to stop run off
 
 
9.    Gravel fill low areas in the yard or next to the foundation should be filled with gravel and compacted soil. Spring rains can cause yard flooding, which can lead to foundation flooding and damage. Also, when water pools in these low areas in summer, it creates a breeding ground for insects

10.  Simple repairs include caulking or installing a variety of inexpensive door/window insulating strips or plastic sheeting. (You can even get help from Uncle Sam on these items, but only until the end of this year.)

11.  Extension cords are for temporary use only. Those cords sitting out in the yard that have weathered the winter or inside the house plugged in on a permanent basis need to go. Check all cords for potentially dangerous nicks or frayed spots. If you have fountains, check those as well for cracks as can be dangerous combination of electricity and water around your home.

12.  Do not store Old paint near the furnace or water heater. It is a Big fire hazard. In general it will be a dried up rock when you get around to opening the can. Peel the labels off and put them in a notebook for future reference, or simply writing the color and brand details for the paint used in each room on the back of the light switch plate there. Or write the name and number and brand in an email and send it to yourself label PAINT FILE. It is against the law to dump wet paint in landfills and our local trash CR &R in Orange County has information about when and how you can dispose this safely Information here: http://www.crrwasteservices.com/cities/orange/residents/

Conservation and rain in an ecosystem