mortgage services

Pre qualify for a home loan today by using our secure online loan application.  Refinance to lower payments or get cashout for any purpose.  Our mortgage calculators help determine home purchase affordability and monthly savings benefit to refinance.  Whether you are a first time home buyer or a seasoned real estate investor, we have various loan programs offering Zero down payment financing options with credit grades ranging from “A”(Excellent) to “C”(Sub-Prime) paper.  Purchasing a home in California is one of the most important financial decisions you will make in your lifetime.  We take pride in our services and we want all of our clients to feel comfortable during and after the closing of their loan.  We like to say, “There is no question to “dumb” to ask in our business”.  Let me guide you to get the best loan product and rate to suit your individual needs. 

Contact Evan Hodge for additional information

rate and term refinance
cash out refinance
private mortgage insurance removal or pmi removal

California mortgage refinancing can be done for one or more purposes but the ultimate loan approval will be based on how an underwriter perceives what benefits the borrower will receive from the new loan.  

rate and term refinance 

A "rate and term" refinance is a term used when only the recorded mortgages or deeds of trust of the given subject property are paid off.It may also involve changing from one type of loan to another.  For example: refinancing from an adjustable rate to a fixed rate or vice versa.  A rate & term refinance does not involve any cash out whatsoever.Whether it is for cash in hand or cash out to consolidate credit card debt, any type of cash out nullifies the transaction to be "rate and term".

There are special circumstances even when only the recorded mortgages or deeds of trust being paid off may be still be considered cash out.  This is whenever there is a second or junior mortgage being paid off, if the 2^nd was taken out within the past 12 months, it will be considered a cash out refinance thus changing the allowable loan to value guidelines set forth in a given loan program.  If the 2^nd mortgage was taken out over 12 months ago then it will be considered "rate and term".  If the 2^nd being paid off is home equity line of credit, the general guideline is that for it to be considered a "rate and term" transaction,there can be no advances against the line of credit in the past 12 months.With exception to the following: If a 2^nd was taken out for the purchase of the property or if the cash advances from the line of credit were specifically for home improvements and can be documented with invoices and receipts it may be considered a "rate and term" transaction.

cash out refinance

A "cash out" refinance is a term used when a refinance transaction involves additional funds being borrowed over and above the total of all mortgages being paid off on a given property.  These additional "cash out" funds may be used for almost any purpose.  Debt consolidation of high interest credit cards or loans, home improvements, and investment are some of the most popular purposes of cash out.  Most lenders will require a letter of explanation regarding the purpose of cash out from the borrower. 

private mortgage insurance removal or "pmi" removal

Another beneficial reason to refinance is to remove private mortgage insurance.  In many instances, a first time homebuyer may purchase a home, with only 5% down payment.  If he takes a conventional loan option with only one loan at 95% loan to value, he most likely will be required to pay mortgage insurance for the additional 15% over the 80% underwriting guideline.  In an appreciating market, especially in California, home values can increase quickly in a short period of time reflecting a much lower loan to value after 1-2 years.  For example: if one purchases a home for $200,000 with 5% down payment, making the loan amount to equal $190,000.  After 2 years this same home appreciated 35% with a current market value of $270,000.  And let's pretend the loan balance is still $190,000. The new loan to value is 70.37% ($190,000. divided by $270,000.) which falls well below the 80.00% Loan to value guideline.  Private mortgage insurance should be removed immediately as it is being charged when the risk is not prevalent due to the appreciated real estate market.  Many unsuspecting borrowers will pay this without the knowledge of the fact that it can be removed by refinancing if their current lender denies their request.

Contact Evan Hodge for additional information