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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!

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

5
Sep

Mortgage Matters Radio on KVEC 920 (Sep 6): People’s Self-Help Housing

Hosts Daniel Podesto and Jason Grote will be joined by People’s Self-Help Housing this Saturday (9 a.m. to 11 a.m.) on KVEC 920. Guests include John Fowler (President/CEO) and Sheryl Flores (Vice President of Home Ownership).

John Fowler’s Bio:

Previously Fowler served as Provincial Executive Liaison with the Franciscan Friars of California where he was responsible for project management and development efforts over a several state area. Fowler served as Project Manager for the restoration of Mission San Miguel Archangel and Mission San Luis Obispo de Tolosa. He also worked at Mid State Bank (now Rabobank) in Arroyo Grande as a Chief Executive Officer.

A graduate of California State University at Sacramento, Fowler completed post-graduate accounting classes at California State University, Bakersfield and is licensed as a Certified Public Accountant. He serves on the boards of directors of the City of San Luis Obispo Cultural Heritage Committee, Newman Foundation Board at Cal Poly University San Luis Obispo, Mission School Memorial Foundation, and Noor Foundation Board . He is also past chair of a City of San Luis Obispo Chamber of Commerce Advisory Board.

 

3
Sep

SLO County’s Workforce Housing Revolution

SLO County Has a Housing Problem. Solutions Might Finally be on the Horizon.

Halfway through 2014, the median price of single-family homes sold in San Luis Obispo County rose to $485,000, a 30% increase over the past 36 months. Local real estate is priced at over double the national median ($223,000) and well over the California median ($393,000).

The high prices are squeezing the local workforce, and making it increasingly difficult for families to put down – and keep – roots in San Luis Obispo County. The upheaval has real and troubling implications for our local communities.

In a recent survey sponsored by the Building, Design, and Construction Cluster (henceforth known as the “Housing Cluster”) of the SLO Economic Vitality Corporation, local employees (88%) and employers (83%), overwhelmingly responded that it was “somewhat or very difficult to find suitable and affordable housing in SLO County.”

Real Estate (1)On average, survey respondents put their target housing expenditure at $1,500 per month. Central Coast Lending co-owner Daniel Podesto noted that the $1,500 target would yield a home loan of just $250,000 in a market where the median price is nearing $500,000.

“When you are looking to finance a mortgage, that will get you about a $250,000 per loan,” noted Podesto. “So when you look at a median home price of $450,000 in this area, where does somebody get $200,000 to put down on a loan?”

Affordable housing for middle-income families is increasingly difficult to find, noted South County-based realtor Michele Ratkay in our mid-2014 SLO County real estate report.

“We don’t have enough inventory for the demand,” she said. “Expect to pay more than you want to get a property: there are 20 people out there that want it.”

In response to the rising cost of living, 27% of survey respondents said that they are likely to leave SLO County in the near future.

Local advocacy groups – interests increasingly aligned – are operating under the belief that SLO County housing doesn’t have to be this way. They aim to ease the supply crunch by paving the road for more workforce housing construction. And their efforts are beginning to pay dividends…

Read more »

3
Sep

Mortgage Rate Update (September 3, 2014)

Conventional mortgage rates (30-year fixed, 15-year fixed) are unchanged from last week’s reading, and at the lowest level in 18 months. The government programs (FHA, USDA, VA) inched up by about 1/4 of a point, but are still very close to 2014′s lowest record.

Read our Market Update column for more on why mortgage rates are so much lower than expected in 2014:

 

Conventional Loan Programs 

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

Conventional Mortgage Rates (September 3)

 

Specialty Loan Programs

FHA, FHA 203k, USDA, VA

FHA, USDA, VA Mortgage Rates (September 3)

 

Manufactured Home Loan Programs

FHA Manufactured, Conventional Manufactured

Manufactured Home Mortgage Rates (September 3)

 

Jumbo Loan Program

Jumbo ($700,000 loan amount)

Jumbo Mortgage Rates (September 3)

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.
2
Sep
Morro Bay (Harbor 1)

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” »

29
Aug

Mortgage Matters Radio: August 30 (REPEAT)

We will be airing a repeat of last week’s episode on Mortgage Matters this Labor Day weekend (August 30) from 9 a.m. to 11 a.m.  Tune in to learn more about SLO County’s workforce housing problem – and the steps local groups and taking to fix it. Click here to download for on-the-go use.

28
Aug

Reverse Mortgages – Tough on Your Beneficiaries?

I have a client whose parents had put a reverse mortgage on their home. I have no idea the circumstances of how they decided to put the reverse mortgage on their home. They were trying to provide for themselves as they came into illness. I’m sure their needs were real and the motivations well intended.

Read more »

27
Aug

Minimum Credit Standards for Home Loan Qualification

Of all the parts of the mortgage financing process, credit qualification is one of the most misunderstood.

Read more »