Thinking Outside The Box When It Comes To Financing Your Home Can Save You Money

Defying predictions by financial experts that they’d rise to well over five percent, home mortgage rates are still amazingly low. As of this article date, conventional fixed Mortgage optionsrate mortgages are at just under 4 and a half percent for qualified buyers. A conventional mortgage is typically one that lasts 30 years at a set interest rate.

This is great news for those looking to purchase a home. But did you know that rates are actually even cheaper if you consider other options? What follows are alternatives to conventional mortgages, along with their current interest rate (As of March 12, 2014).


15 Year Fixed Rate Mortgages/3.48%

This is a great alternative for home buyers looking to save money on their interest rate, while paying off their mortgage in half the time it takes for a conventional home loan. A 15 year fixed rate mortgage allows the borrower to pay down principle more quickly as well, which helps to increase the equity in their property. If there is a downside, it’s that the monthly loan payment will be higher since you’ll be paying it off twice as fast.

FHA 30 Year Fixed Rate Mortgage/4%

Those who qualify under an FHA (Federal Housing Administration) loan may obtain a rate that’s a half percent lower than a conventional mortgage. Qualifications for FHA loans may also be less stringent than a conventional mortgage, although the maximum loan rate for a single family home is $625,000.

Jumbo Fixed Rate Mortgage/4.31%

If you need a home loan up to $729, 750 (In Los Angeles County. Other areas may vary), a jumbo loan is the way to go. At these rates, you most certainly have increased buying power.

5/1 year Adjustable Rate Mortgage/3.25%

By far the best loan rate available, the “Hybrid ARM”, as it’s occasionally referred to, is a loan with a lower fixed rate for 5 years, which will convert to a standard market rate at the end of its term. This helps borrowers to better manage their cash flow in the early years of owning their home, but there is a risk of a considerably higher mortgage rate after five years, even with an interest rate cap. Many borrowers consider this option if they are only going to be remaining in the home for five years or less, or are planning on refinancing to a fixed rate conventional loan prior to the end of its term.

We have answers to all of your real estate questions. Contact Montemayor & Associates for a no obligation consultation today.

Read more

Federal Housing Authority notifies lenders that they will back mortgages for buyers who filed for bankruptcy or lost their home during the recession.

In a bold move that is sure to hasten home sales, the Federal housing Authority (FHA) notified lenders that they will shorten the wait time for home buyers who previouslyFHA shortens wait time for bankrupt buyers to purchase a home filed for bankruptcy or had been forced to short sell their property in an effort to avoid foreclosure. The wait time has been changed from two years to one.

A portion of the letter reads as follows:

“FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repa...

Read more

We get this question a lot!

“When should I start the purchasing process as a home buyer?”

To answer that, let’s talk about the purchasing process itself. A lot of potential home buyers are confused about the process…sort of like the “chicken or the egg” situation, which comes first?

It is very exciting to begin looking at homes and dreaming big, but those dreams may be headed for a crash landing if you do not know how much home you can actually buy.

We always…repeat…ALWAYS recommend you speak with a mortgage lender and begin the loan pre-qualification process first at least 6 months BEFORE you begin looking at homes for sale. Why is this important?

First of all, as stated above, you don’t want to begin looking at homes you may not be able to afford. This can easily take the wind out of your sails and distract from your goal of finding the perfect home for you. That being said, when you know how much home you can purchase, we can help you maximize the value of your loan limit to find you the best possible property to suit your wants and your needs.

Secondly (and equally important), we want to make sure that should there be any derogatory information on your credit report, that you have plenty of time to take care of those issues before you attempt any final loan pre-approvals. Having a clean credit rating can save you a LOT of money in your mortgage payments because you will qualify for a better interest rate.

We are here to help. We have all kinds of great information about the home buying process at, or you can call us directly with your questions at 661-290-3802.

With a number of condominiums and townhomes no longer qualifying for loans under FHA (Federal Housing Authority) guidelines, we have available for those looking to move into a condo or townhome a loan program where you can qualify for a loan with as little as 5% down.

This program is made available largely due to recent FHA guideline changes that disqualifies certain condo and townhome complexes due to several factors, including owner occupancy and amount of delinquencies in the HOA’s.

However, since there is still such a demand for these types of homes, lenders have put together programs that still allow for loan qualification under certain guidelines where home buyers can get in for as little as 5% down.

If you are a first time home buyer, or are considering a move to a condo or town home for any reason, give us a call at 661-290-3802 and we’ll go over the details of this program and help you get started with the qualification process. You can also begin your condo or townhome search by going to