Real Estate Market Condition in California The economic crisis has brought increasing instability to the Unites States real estate market and the same thing can be said about California. Getting a mortgage for home purchase is seldom troublesome for the buyer due to the increase in value of developed and undeveloped land. California has always been one of the most expensive places to reside in and their properties are always first class. But since the economic crisis caused an uncertainty in the market, the credit slowdown offers a financial benefit for the homeowner to refinance their loan.
Low Prime Rates Despite of the drastic effect done by the economic crisis, the Federal Reserve decreased interest rate to record lows. The "prime rate" is the rate that banks lend to each other and serves as a basis for the interest rates of loans available to all consumers. The current prime rate is 3.25 - the lowest since August of 1955. The low interest rate opens the opportunity for the California home owner to refinance their property. However this opportunity will not last long even if the interest rates dropped steadily for the past two years already. Change will be expected at any given time.
California Home Sales Trend In February 2009, almost 43% more homes were sold in California compared to February 2008, ending the trend of falling home prices. Interest rates are projected to increase due to President Barack Obama's economic stimulus. Aside from that, Treasury Secretary Tim Geithner's proposed economic reforms hints that the favorable situation for the home owner to refinance their mortgage is apt to change.
Flexibility When the California home owner refinances their home loan, they get a chance to reduce the amount of their monthly mortgage payment. Not only that but it also increases the payback or amortization payment.
A reduced monthly mortgage amount enables the home owner either to invest the saved income in more lucrative, current assets, or simply to reap the benefits of additional disposable income--California homeowners are offered with flexibility when refinancing,. Thus, the homeowner benefits from the increased financial freedom of a lower, refinanced mortgage, while remaining comfortably in their California residence. - 23802
Low Prime Rates Despite of the drastic effect done by the economic crisis, the Federal Reserve decreased interest rate to record lows. The "prime rate" is the rate that banks lend to each other and serves as a basis for the interest rates of loans available to all consumers. The current prime rate is 3.25 - the lowest since August of 1955. The low interest rate opens the opportunity for the California home owner to refinance their property. However this opportunity will not last long even if the interest rates dropped steadily for the past two years already. Change will be expected at any given time.
California Home Sales Trend In February 2009, almost 43% more homes were sold in California compared to February 2008, ending the trend of falling home prices. Interest rates are projected to increase due to President Barack Obama's economic stimulus. Aside from that, Treasury Secretary Tim Geithner's proposed economic reforms hints that the favorable situation for the home owner to refinance their mortgage is apt to change.
Flexibility When the California home owner refinances their home loan, they get a chance to reduce the amount of their monthly mortgage payment. Not only that but it also increases the payback or amortization payment.
A reduced monthly mortgage amount enables the home owner either to invest the saved income in more lucrative, current assets, or simply to reap the benefits of additional disposable income--California homeowners are offered with flexibility when refinancing,. Thus, the homeowner benefits from the increased financial freedom of a lower, refinanced mortgage, while remaining comfortably in their California residence. - 23802
About the Author:
Brandon Roberts is a Certified Mortgage Planning Specialist. CMPS mortgage brokers in Temecula specialize in obtaining affordable funding for new homes temecula California, mortgage loan modification and temecula refinance loans online. Brandon is an expert in the Temecula lending community and gladly offers free home mortgage consultations at 951-813-3625 or via email at b.roberts [ @ ]no-surprises-mortgage.com
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