September 2017 Mortgage Rates Average
CURRENT REFINANCE RATES INYO CA
Product Rate Change
● 30 year fixed 3.63% ↑ 0.02
● 15 year fixed 2.99% ↑ 0.07
● 5/1 ARM 3.07% ↑ 0.14
We shall cover some common questions that Inyo CA Mortgage borrowers often ask in the article:
The Benefits of FHA Mortgage
In 1930 when we had a great depression. Banks were foreclosing on properties and reckless bankruptcy filling was being made back then. The Government realized that some sort of protection to the borrower and banks has to be provided in order that a stable home mortgage system can be designed. Hence FHA was worked out as a solution.
FHA mortgage is essentially backed by Federal Housing Administration which basically guarantees the lender or the bank that in the event borrower makes a default on his payment. FHA will make the bank good with the sum loaned on the mortgage.
Hence banks and lenders find it easy to provide a mortgage on easy terms to the borrowers. Whether you are buying a home or refinancing as an existing FHA mortgage holder.
What that means is, like all individuals we go and buy a life insurance policy that basically acts as a hedge against any calamity on life that may happen and protects our family. The same way when you take an FHA mortgage. You have to buy FHA Mortgage Insurance upfront from FHA for your mortgage.
Call Inyo CA mortgage expert below to get you the lowest mortgage rate on your refinance.
This mortgage insurance has two components. one is called UPFRONT MORTGAGE INSURANCE which is 1.75% of your Base mortgage amount that you are borrowing. The other is called MONTHLY MORTGAGE INSURANCE which is a smaller percentage based on the appraised value, loan term, and mortgage balance. This is paid monthly to FHA like any other insurance premium.
Both the upfront and monthly mortgage insurance premium is tax deductible. The monthly mortgage insurance for almost any loan term or product type the borrower goes for would be for life. Typically in case of another mortgage like a conventional mortgage. The moment you carry mortgage balance which is equal to 80% of the appraised value of the home in the current market. Mortgage insurance can be waived but that is generally not the case with FHA.
Call Inyo CA mortgage expert below to get you the lowest mortgage rate on your refinance.
The advantage to the Inyo CA borrower is that he gets a lower rate than any other mortgage type. The underwriting is not as tough or scrutinized because its already backed by FHA and borrower is taking an Insurance policy over and above the mortgage. It comes with a very low down payment option of only 3.5%. Not only that, once you do get enrolled for an FHA and the next time you refinance. You are not required to pay for another appraisal. This is called STREAMLINE refinancing. Your income and credit scores and not scrutinized as much either. STREAMLINE essentially means that you already are in FHA bucket and from FHA bucket you are moving to the same FHA bucket to get some monthly savings.
Another advantage is that once you take FHA paying UPMIP of 1.75% of the base loan amount. The next time you refinance. That does not mean you pay again 1.75% of the loan amount. The last UPMIP that you paid is adjusted with the new 1.75%. The borrower does not get a cash back of UPMIP but its adjusted with the new loan and it's its new UPMIP as a rule with some conditions.
Call Inyo CA mortgage expert below to get you the lowest mortgage rate on your refinance.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower. You can even email at roger@affordable-payment.com
Article by Roger Shanker
