Refinance at Low Rates 85%, 90%, 95% Loan to Value Ratios, LTVs - Murrieta, Temecula Valley, throughout California
One of my clients, Chrissy A., bought a foreclosure home in Murrieta, CA, as the market dropped through 2008. She had a 20% down conventional loan. The home price continued to drop just enough that it was no longer an 80% loan-to-value, while purchase interest rates dropped over 2% from when she purchased. She checked whether I could do refinance loan with less than 80% loan-to-value ratio. I could.
Chrissy's loan would have worked to reduce her monthly payment if her LTV came in at 95%; at a higher interest rate to cover the Lender Paid Mortgage Insurance, LPMI, which can be bought out by the rate so there is no monthly Mortgage Insurance, or MI, component in the monthly payment. Fortunately, the appraisal came in above where current comparable sold prices were - as home prices in Murrieta and Temecula have stabilized and indeed started to creep up - putting the loan-to-value ratio at 85%! So Chrissy got her foreclosure-priced home along with an even lower mortgage payment, taking advantage of two of the major economic trends out there: low home prices from forced sales and extremely low interest rates. She is choosing to bring in her prepaids (e.g., taxes that she'd have to pay to the county anyway, and insurance) to get the rate even lower.
Do you know someone who could benefit from these trends? Please have them call me and see how we can help.
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