I don't need to refinance...I have a 30-year fixed!
After looking at your Promissory Note, you may be suprised!
With the craziness of the "Refi Boom" and the historical levels of appreciation in Real Estate an influx of loan officers came into the mortgage industry to make a QUICK BIG BUCK! Mortgage companies were hiring people left and right to simply keep up with the phone call demand and in most places there was a revolving door...If the new guy didn't make it as a salesperson...the next one was hired. I witnessed mortgage brokers giving their loan officers incentives to get deals closed on the phone, such as new cars, trips to exotic places and the such. This influx and crazy period a few years ago brought in a large amount of fresh loan officers that were new to the business...following a coin phrase I've heard in Real Estate..."Fake it till you Make It!"
Well, many did "fake it!" They didn't have the proper training because the Brokers were too busy breezing over files when needed. They faked it so good that they didn't really understand the terms they were selling in the first place and they didn't think about social responsibility, a family's future and the devastation that could be caused by a person not understanding the terms on their mortgage. The game played out on both sides. 
With the influx of Stated Income loans to the scene, the borrowers faked the income and the loan officers faked the verification of documents reflecting that income.
And now...We have close to 2 TRILLION DOLLARS of adjustable loans set to "readjust" over the next few years. $1 TRILLION in 2007 alone!
Many homeowners are going to see a sharp spike in their mortgage and I believe it will create a second "refi boom." The difference this time though is that many of the loan officers that came in for a quick buck are somewhere else with the mess to be cleaned up by the true mortgage professionals that look at their business from a long-term approach with clients and not for the sake of making the "quick buck."
I've had several potential clients over the past few months stating that they have a 30 year fixed at X rate and everything is great...There's no need to refi. Well, after telling them to check the terms on their Promissory Note, they come to find out that the verbiage used with them over the phone with the slick or nieve salesman a few years ago pitched the loan as a completely different product! To which I now need to reply...I'm sorry sir, but what that person should have said is that it is amortized over a 30 year period, but it's an adjustable rate loan that is fixed for 2,3,5,7 years and flips into an adjustable loan....Ouch!
If you have found that you are in this situation with your mortgage in California...Give me a call!
30 Year fixed loans are very competitive with the adjustable rates these days. If your intentions are to be in your home for a while, let's get you into what you initially wanted...A 30 year fixed!
Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.CALoan.com
Blog: http://www.CARealEstateBlog.com
"You find the perfect home, we'll find the perfect loan!"
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You speak the truth buddy. These particular clients had 5 years ARMs that they closed in 2002 that the broker or loan officer told them were "30 year fixed" mortgages. The note tells the story not the previous loan officer.
Eddy