mortagesandforeclosures

by Brandon Roberts

The Condition of the California Real Estate Market The past two years have brought increasing instability to the United States real estate market: nowhere is this more true than California. California statistically is one of the most expensive places to live in the United States; property in California has long been at a premium. Obtaining a mortgage to purchase a home in California has seldom been troublesome for the creditworthy buyer: due to the constant increase in the value of developed and undeveloped land in California, the buyer with a reasonably high credit score and reliable income can often purchase a new home with most, if not all, of the price funded by the loan. While volatility in the housing market and the drastic decline in real estate values have temporarily slowed this trend, the credit slowdown offers a financial boon to the homeowner to refinance their current loan. Yes, refinancing has been considered in California Real Estate market.

Prime Rate at Record Lows While the current economic crisis has brought a drastic fall in the price of homes in California, the Federal Reserve has decreased interest rates to record lows. The so-called "prime rate" is the rate at which banks lend money to each other; the prime rate serves as a basis point for the interest rates of loans available to consumers. As recently as June of 2006, the prime rate was 8.25. The current prime rate is 3.25, the lowest since August of 1955. The phenomenally low interest rates now available represent a once-in-a-lifetime opportunity for the California home owner to refinance their property. This window of opportunity will not last long. While interest rates have fallen steadily over the past two and a half years, this is expected to change.

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.

With more money at hand, the California home owner can have enough to invest in profitable assets to make more money.

About the Author:

Brandon Roberts is a Certified Mortgage Planning Expert. 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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