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First-Time Buyers Guide to the California Central Coast

As home prices continue to rise in San Luis Obispo County (30% over the past 36 months), the remaining “affordable” properties are subject to intense competition among buyers. First-time buyers, especially, have found the market difficult to navigate.

Continue reading “First-Time Buyers Guide to the California Central Coast” »

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SLO County Real Estate Market Overview (Q2, 2014)

San Luis Obispo County is a beautiful place to live and work. The County’s economy is growing. The unemployment rate is sixth lowest in the state (of 58 counties) and the burgeoning local tech and engineering industries are booming.

Continue reading “SLO County Real Estate Market Overview (Q2, 2014)” »

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Getting Creative: Specialty Home Loan Solutions From CCL

The home purchase process is rarely simple. Every borrower is unique, and every loan is different. To meet the needs for every borrower that comes through our doors, we make sure to continually expand our loan program portfolio.

Continue reading “Getting Creative: Specialty Home Loan Solutions From CCL” »

Recent Articles

18
Sep

Mortgage Matters Radio: September 13 (NEW)

Guests: None.

Central Coast Lending Soundcloud (full episode downloads). September 13, 2014 (link to episode).

17
Sep

Mortgage Rate Update (September 17)

Mortgage rates inched higher last week. These days “no big news” tends to mean “slightly higher rates.” Recent volatility abroad has helped push rates down to an 18 month low, but a quiet week tends to release some of that downward pressure. We cover this and more in this week’s Market Update Blog.

Wondering if you should lock your rate? Every situation is different. Give us a call at 805.543.LOAN and we would be happy to talk it over. Below, see mortgage rates for the week of September 15 – 19.

Read more »

15
Sep

Mortgage Rates Rise on Quiet Week (+ USDA Fees set to Increase)

Last week was quiet for economic news. Retail sales came in better than expected, though they weren’t particularly awe-inducing. Consumers spent 0.6% more in August than in July, which suggests that the disappointing employment report (as discussed last week) may indeed be a simple aberration.

Mortgage applications dipped during the holiday-shortened Labor Day week. Led by an 11% decline in refinance applications, the MBA measure of mortgage activity is now at the lowest level since the year 2000. Applications for home purchases fell 3.0%.

Any questions about home loans in California? We are The Mortgage Experts: ask us anything! Call 805.543.LOAN or email us today.

The Federal Reserve’s stimulus activity (quantitative easing) helped mortgage rates reach the lowest levels on record in 2012, which set off a refinance boom. Today, as the market normalizes, many current owners have already refinanced to a lower rate.

There are more reasons to refinance beyond “lower rate, lower monthly payment”, including eliminating (or reducing) mortgage insurance, and taking cash out to consolidate debt and make home improvements. We expect that given time, refinance applications will increase.

This coming week will be a busier one. The Federal Open Market Committee (FOMC) meets and will release its quarterly projection of economic activity for the year. We expect to see the continuation of “tapering” (reduction of QE) and modest expectations for future growth. Data releases include consumer price index, jobless claims, housing starts, and industrial production.

 

Mortgage Rates Inch Higher

Mortgage rates inched higher last week. These days “no big news” tends to mean “slightly higher rates.” Recent volatility abroad has helped push rates down to an 18 month low, but a quiet week tends to release some of that downward pressure.

Below, we have included a graph with data from Freddie Mac’s weekly national mortgage rate survey.

pmms_chart

 

USDA Mortgage Insurance Fee Set to Rise

The monthly mortgage insurance fee for the USDA loan will increase from 0.4% to 0.5% for home loans completed on and after October 1, 2014.

For a $400,000 home purchase, the fee bump would move the monthly mortgage insurance payment from $133.33 to $166.67.

Buyers who are in the process of completing a USDA loan will need a Conditional Approval from the Rural Development office by September 30, or will be be required to accept the additional fee… READ MORE

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email us here to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About   ||   Mortgage FAQ   ||   Market Update Blog   ||   Radio Show   ||   Contact

15
Sep

USDA Mortgage Insurance Fee to Increase from 0.4% to 0.5% on October 1, 2014

The mortgage insurance fee for the USDA loan will increase from 0.4% to 0.5% for home loans completed on and after October 1, 2014.

For a $400,000 home purchase, the fee bump would move the monthly mortgage insurance payment from $133.33 to $166.67.

Any questions about home loans in California? We are The Mortgage Experts: ask us anything! Call 805.543.LOAN or email us today.

Buyers who are in the process of completing a USDA loan will need a Conditional Approval from the Rural Development office by September 30, or will be be required to accept the additional fee.

The USDA mortgage insurance fee is intentionally left low by the Rural Development office to promote homeownership in rural areas. By offering a low rate, no down payment, and flexible financial requirements, the USDA is one of the most sought-after loans on the market, especially by first-time buyers and buyers with low-to-moderate income.

Even with the increase, USDA mortgage insurance fee is still well below the FHA requirement, which begins at 1.3% of the loan amount. The FHA loan is another program directed at new and middle-income buyers.

Click here to learn more about the USDA loan program and give us a call at 805.543.LOAN with any questions.

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email us here to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About   ||   Mortgage FAQ   ||   Market Update Blog   ||   Radio Show   ||   Contact

12
Sep

When You Lose Money, What Returns Do You Need to Make it Back? You’d be Amazed


David Cryden
 

DWC Photo 3 6 7 13Blakeslee & Blakeslee 
Co-Owner, Vice President & Certified Financial Planner

It’s important to remember that investing is not a sprint, it’s a marathon. Many investors strive to get “too good to believe” returns without considering what happens when that star investment has just a single bad year in four.

It’s not uncommon that investments that really overachieve have taken more risks than you might realize. They’re shooting for strong single year returns; as opposed to more consistent long term annual returns. In doing so, you’ll typically find they have more volatility than other more balanced long term investments which can have less risk and volatility.

Here’s an example of the mathematics of loss and what it can mean to your portfolio:
If you make 10% per year, three years in a row, you’re average annual rate of return is 10%. What happens to your annualized rate of return when you lose ten percent (-10%) in year four?

Take a look at the following chart to see what happens when you lose money in year four. Note what you’ll need to make in year five to get back to an average annualized rate of return of 10% for all five years.

  • 1st Year 10%
  • 2nd Year 10%
  • 3rd Year 10%
  • 4th Year -10%

Annualized rate of return after four years is 4.6%.

The fifth year return needed to get back to 10% per year is 34.4%.

The moral of today’s story is to strive for consistent returns keeping the mathematics of loss to a minimum. This doesn’t mean you should hide your money somewhere with no risk. It just says, less volatility can be a real positive.

 

See More From David Cryden


David Cryden is Co-Owner, Vice President, Certified Financial Planner™ at Blakeslee & Blakeslee, a financial planning and investment company based in San Luis Obispo. Reach him by email ([email protected]) or phone (805.544.PLAN). David works out of the home office in San Luis Obispo. Member FINRA. Member SIPC. 

12
Sep

How Much Will You Make During Your Career? Find Out Here


David Cryden
 

DWC Photo 3 6 7 13Blakeslee & Blakeslee 
Co-Owner, Vice President & Certified Financial Planner

Have you ever wondered what the value of your working career might be if you could calculate it? Here’s a simple tool I found online which can help you make that calculation. It estimates the value of your work over the length of your career. It’ll certainly give you valuable information that can be useful when considering your past, future, and financial plans.

Knowing the value of your working career can also be utilized to help you determine if you want to insure those future earnings. The insurance most people use to protect their earning power is disability insurance.

The tool can also be useful to a retiree who may be considering the amount of long term care insurance they may need.

Here’s a link to the website:  Career Earnings Calculator

Please don’t hesitate to write if you have any questions.

See More From David Cryden


David Cryden is Co-Owner, Vice President, Certified Financial Planner™ at Blakeslee & Blakeslee, a financial planning and investment company based in San Luis Obispo. Reach him by email ([email protected]) or phone (805.544.PLAN). David works out of the home office in San Luis Obispo. Member FINRA. Member SIPC. 

10
Sep

Mortgage Matters Radio: September 6 (NEW)

Guests: Peoples’ Self-Help Housing - John Fowler (President/CEO) and Sheryl Flores (Vice President of Home Ownership).

Central Coast Lending Soundcloud (full episode downloads). September 6, 2014 (link to episode).

 

10
Sep

Mortgage Rate Update (September 10)

Employers added 142,000 jobs in August, according to the Bureau of Labor’s widely followed monthly report. This is the first month since January 2014 that payrolls failed to add over 200,000 positions.

The report came in below expectations, but in general, investors, analysts, and economists don’t seem too worried. Markets took the news in stride (our weekly Market Update blog provides full analysis).

The factors effecting mortgage rates right now seem to be a combination of U.S. economic data (down employment report, positive Q2 GDP), Federal Reserve tapering (phasing out quantitative easing), and turmoil abroad (Ukraine-Russia, European economic struggles, etc). Despite some good news on the home front, investors remain cautious – which means mortgage rates continue to come at a bargain.

Rates stood mostly still last week (September 2 – 6), but have since risen in the new week (September 8 – 12). Even with the increase, rates sit near the lowest levels of 2014.

  • Conventional Rates: 30-year fixed, 15-year fixed, and 30-year high balance are up 1/2 of a point,
  • Government Rates (FHA, USDA, VA): Up between 1/2 of a point and 5/8 of a point.
  • Manufactured Rates: Up over 3/4 of a point.

Wondering if you should lock your rate? Every situation is different. Give us a call at 805.543.LOAN and we would be happy to talk it over.

Conventional Loan Programs 

30-year fixed, 15-year fixed, 30-year high balance

Conventional Mortgage Rates (September 8, 9, 10, 11, 12)

Specialty Loan Programs

FHA, FHA 203k, USDA, VA

FHA, USDA, VA Mortgage Rates (September 8, 9, 10, 11, 12 )

Manufactured Home Loan Programs

FHA Manufactured, Conventional Manufactured

Manufactured Home Mortgage Rates (September 8, 9, 10, 11, 12)

Jumbo Loan Program

Jumbo ($700,000 loan amount)

Jumbo Mortgage Rates (September 8, 9, 10, 11, 12)

Rates Directly to Your Inbox!

If you would like to receive a more detailed Mortgage Rate report, you can subscribe to our “CCL Rate Tracker.” The CCL Rate Tracker follows 10 loan programs and publishes three rate options closest to 1 point, par, and 1 rebate for each program every two weeks and delivers the results in an email. To sign up, please email [email protected] with the text “Rate Tracker.”

Apply Online Today!

When you register for a Loan Center account, you can submit a loan application online and the sensitive information that you provide will be transmitted securely. Your account also enables you to easily modify your loan application and view the status of your loan. Any questions? Call us at 805.543.LOAN or email us here.

About the Loan Programs:

 

NOTE:

  • Mortgage rates assume purchase of a singe-family, detached, owner-occupied, residential property.
  • Mortgage rates assume borrower credit score of 760 and a Debt-to-Income ratio of 35%. Rates for conventional loan programs assume a loan-to-value of 80%.
  • Loan amount is $417,000 for all programs (appraised value of $522,000), except for the high balance ($561,200 loan and $722,000 value), and Jumbo ($700,000 loan and $1,000,000 value)
  • Mortgage rates and APR subject to change.
9
Sep

VA Streamline Refinance (IRRRL) in San Luis Obispo County

VA mortgage holders: drop your interest rate and monthly payment with minimum hassle!

Central Coast Lending offers VA mortgage holders the ability to refinance their VA mortgage to a lower interest rate with minimal documentation. The lower rate can help the homeowner reduce their monthly mortgage payment and decrease the amount of interest paid over the life of the loan.

CA and USA Flags

To put it bluntly, this is the simplest kind of loan you can find on the market.

The VA-backed streamlined refinance product is called the Interest Rate Reduction Refinancing Loan (IRRRL), and allows vets to drop their VA mortgage rate WITHOUT a new appraisal or credit underwriting process.

The loan’s structure provides additional shortcuts. Since the veteran must already have received their certificate of eligibility (COE) to take out the initial VA loan, repeat COE documentation is not required.

The IRRRL only works on properties that were purchased using a VA loan under the veteran’s VA Loan eligibility. The initial entitlement used by the veteran is simply reused, and the borrower must only prove that he/she previously occupied the home.

Once qualified, the veteran must complete the streamline refinance by obtaining a lower mortgage rate. The veteran may also refinance an adjustable rate mortgage (ARM) to fixed at any time – even when the fixed rate is higher.

The funding fee for the VA loan is just 0.5%. A loan of $100,000, for example, would incur a $500 fee.

Give us a call (805.543.LOAN) or email (LINK) with any questions!

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email us here to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About  ||  Mortgage FAQ  ||  Market Update Blog  ||  Radio Show  ||  Contact

8
Sep

Market Update: Employment Disappoints, Mortgage Rates Unchanged

Employers added 142,000 jobs in August, according to the Bureau of Labor’s widely-followed monthly report. The tally fell below the expectation for 200,000+ jobs added.

This is the first month since January 2014 that payrolls failed to add over 200,000 positions.

“One can’t help but wonder if this is just a speed bump, or if it is a new trend,” said Jason Grote, co-owner of Central Coast Lending, noting that this time around, we don’t have a convenient large-scale answer like “poor weather” or “government layoffs” to serve as blame.

One cause for optimism, as noted by Wall Street Journal reporter Kathleen Madigan, is that demand for labor persists. The average workweek held at 34.5, and “if demand for labor was in reality weakening, the first thing businesses would do is cut the hours of their existing employees.” Another positive for labor: the number of “involuntary” part-time workers continues to decrease, which means that businesses are not widely cutting full-time workers to part-time, or adding only part-time jobs to hold down labor costs.

The workforce participation rate ticked down to 62.8% – the lowest reading since 1978 – and the employment-population rate of 59% was unchanged for the third straight month.

Investors didn’t see enough in the report to make any market-changing moves. The lower-than expected returns will “put everybody at heightened awareness,” said Grote, but in the meantime, concerns abroad (geopolitical issues and struggling European economies) hold center stage.

Economists seem to be taking the news in stride, and attributing the data as a “one-off” dip. Pimco co-CEO Mohammed El-Erian told CNBC’s “Squak Box” that he actually sees some good in the report. Long-term unemployment is down and the dip in the unemployment rate (6.1%) seems genuine (i.e. not propped up by people leaving the workforce).

At the end of the day, Grote doesn’t see much cause for panic. “To me it is just the growth pains of getting back to normal,” he said. “They can’t all be great months.”

 

Mortgage Rates Unchanged

30-year Fixed 2014 Movement GraphWhen markets move, mortgage rates move. The employment report didn’t cause much distress in markets, and mortgage rates stood mostly still.

Another piece of data that came out recently: second quarter GDP was revised up to +4.2%, suggesting that the economy enjoyed even more growth than expected. Ordinarily, this type of good news would put upward pressure on interest rates (click here to learn about why – and when – interest rates move).

The only problem: concerns abroad trump success at home. Germany turned in a recent quarter of negative GDP, the Russia-Ukraine issues continue, and European economic growth remains flat.

“If anything, you could argue there is downward pressure on rates,” said Grote. “The brighter U.S. economic outlook was supposed to mean higher mortgage rates, but instead they have stayed steady and even declined.”

Click here to read more about why rates have zigged (dropped) when everybody expected them to zag (jump).

 

First-Time Buyer Guide to the Central Coast

Any questions about home loans in California? We are The Mortgage Experts: ask us anything! Call 805.543.LOAN or email us today.

Mortgage rates have done their part to aid new buyers, but rising prices on the Central Coast have made the home purchase process a challenge. As we wrote in our Q2 SLO County real estate report, the median sales price of single-family Central Coast homes has jumped over 30% in the past 36 months.

As a result, this window of affordability for middle-income and low-income buyers hasn’t resulted in the kind of boom we might have expected for first-time buyers. Nationally, 29% of purchases were attributed to first-timers in May of 2014, where the historical average has been closer to 40%.

We have put together a thorough guide to help first-time buyers succeed. Use these tips to better understand the mortgage process, qualify for a loan, and then submit a competitive bid that will improve your chances of winning. Click here to view.

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email us here to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

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