What a difference two months (and 1.11%) makes: Higher rates mean this Brisbane condo would now pencil out to $254 more a month (Kiesha Stephens/Redfin)

Mortgage interest rates are on a tear. Last week they registered their sharpest one-week spike in years, hitting 4.46% for a fixed-rate 30-year home loan, according to Freddie Mac. Less than two months earlier, the rate was 3.35%.

Today’s Chronicle looks at the impact on the housing market; click here for the story.

Is a percentage more really that big a deal? Well, just ask all the folks who refinanced to carve that 1% off their mortgage rate.

Those who have not yet refinanced, perhaps because they were either underwater or close to it (lacking that magic 20% equity) are getting worried they may be out of luck. It’s a balancing act to see what will happen faster: Higher home values to increase their equity or higher mortgage rates that will make a refi less attractive.

Some home buyers, as well as those refinancing, may see the rising rates as motivation to get in the game.

“The rate increase spurred a lot of people to pull the trigger,” said Jay Voorhees, owner/broker of JVM Lending in Walnut Creek. “We’ve had an uptick in volume recently with both purchases and refinances.”

In his blog, mortgage broker Julian Hebron of RPM Mortgage in San Francisco discusses the possibility that rates could hit 5% in the near future.

While many experts say the housing market as a whole is likely to shrug off the higher rates, for some individual buyers, especially those on a shoestring budget, the impact will be stronger.

Consider these two homes now on the market, a condo very close to the Bay Area median, and a more high end home. Assuming a standard 20% down payment, look at what the monthly mortgage payments would be under today’s rate, and what it would have been in early May with the 3.35% rate.

This Brisbane two-bedroom condo “steps from the great outdoors,” (at top) is listed at $499,000. At today’s rate of 4.6%, monthly mortgage payments would be $2,017.  Monthly payments at 3.35% would be $1,763, or $254 less.

This San Jose 5-bedroom with an “inviting floor plan” and “lush backyard” in the Cambrian neighborhood (below)  lists at $889,000. The monthly cost at 4.6%: $3,587.  At 3.35%: 3,135. The difference: $452 a month. (Caveat: In reality this jumbo mortgage might mean a higher rate, but the spread between two months ago and now would be consistent.)

Carolyn Said is a San Francisco Chronicle staff writer. For Bay Area real estate news and insights, follow  her on Twitter: @csaid

This 5-bedroom in San Jose’s Cambrian neighborhood lists for $889,000. (Ashley Rabello/Redfin)

Article source: http://blog.sfgate.com/ontheblock/2013/06/30/mortgage-interest-rates-on-upswing-heres-the-pocketbook-impact/

San Jose, CA (PRWEB) May 31, 2013

Arcus Lending, a San Jose Mortgage Broker and Bridgette Akunal, a Residential Real Estate Specialist with Intero Real Estate, have teamed up to institute a scholarship for deserving Santa Clara High School, California students to help enroll into college.

Based on an essay competition, The Akunal Arcus Lending Scholarship was awarded to three selected graduating seniors who are enrolled full time at Santa Clara High School with a minimum GPA of 3.0 and have been accepted to a Junior or Four Year College.

“At Arcus Lending we believe in giving back to the community. Schools are a great way for us to make a positive impact on the community we operate in”, said Shashank Shekhar, CEO of Arcus Lending, Amazon.com Best-selling author and among the top 1% loan officers in the country.

“This generous scholarship is open to all graduating seniors and is based on academic standing and college readiness. I cannot express my gratitude enough to Akunal and Arcus Lending Team for this donation and their willingness to support our students in their ongoing academic endeavors.” said, Dave Grissom, Principal, Santa Clara High School.

“As a Residential Real Estate Specialist serving the San Francisco Bay Area for the last 13 years, I highly embrace this great opportunity to be a resource to young adults. By assisting in their education and personal empowerment, they can make a difference for a better future,” said Bridgette Akunal, one of the leading professionals in the real estate industry and an active member of many Silicon Valley Organizations.

First place winner was honored $1200, second place winner $500 and third place winner $300 towards their scholarship tuition at the Santa Clara High School Graduation Ceremony on May 29, 2013.

About Arcus Lending:

Arcus Lending (NMLS 1035734) is a mortgage broker offering home purchase and refinance loans in the state of California. The company plans to expand its operations on the East Coast this summer by offering home loans to residents of those states.

More information about Arcus Lending can be found by calling at 855.644.5626, by emailing at info(at)arcuslending(dot)com or by vising their website at http://www.ArcusLending.com

About Bridgette Akunal :

Bridgette Akunal (DRE-01297423) is a real estate consultant specializing in residential and investment properties in the San Francisco Bay Area, California. More information on Bridgette Akunal and Intero Real Estate Services can be found by calling 408.973.9800, by emailing at bakunal(at)interorealestate(dot)com or by simply visiting http://www.360SiliconValleyRealEstate.com

For the original version on PRWeb visit: http://www.prweb.com/releases/prwebArcusLending/Scholarship/prweb10602484.htm

Article source: http://www.sfgate.com/business/prweb/article/New-Scholarship-Instituted-by-Arcus-Lending-and-4564522.php

“There is a huge population that have benefitted from adjustable rate mortgages. When the rates adjusted, they adjusted down. Those homeowners have been riding those low, one-year arms. If they start to hear about rates going up, they may come out of the woodwork to lock into fixed rates,” says Strent.

That may be, but 88 percent of loans outstanding today are fixed, according to the Mortgage Bankers Association. Just 12 percent are adjustable rate. Even if rates do not rise any higher than they are today, which they may not, they would have to fall below last year’s lows to see the high refinance volume of 2012 continue in 2013.

(Read More: Link Between Credit and Mortgages: Not What You Think)

“The refi apocalypse is upon us,” says Mark Hanson, a mortgage analyst in Northern California. “The thought is that there are a bunch of homeowners on the fence who haven’t refi’d who will all jump in thinking they will miss out. The theory is 100 percent nonsense. The series will simply plunge. That’s because after 16 months of sub 4 percent rates — and every bank loan officer and mortgage broker doing everything they can after a long mortgage banking income drought that ended with Twist — there is nobody left to refi. In fact, the only reason refi applications stayed flat in Q3 and Q4 was because they passed a new law allowing refinances regardless of the LTV [loan to value]…the HARP unlimited LTV refi.”

While the Federal Reserve does not set mortgage rates, a signal that the economic recovery is improving and even the slightest hint that the Fed could end its purchases of mortgage-backed securities, could push rates slightly higher.

“The Fed likely won’t use its statement to markets to finger a specific date on which QE3 will end, but that won’t stop investors from guessing. If the herd believes that QE3 will terminate within the next 6 months, mortgage rates will likely rise. If QE3 is believed to extend into 2014 and beyond, mortgage rates will likely fall,” writes Dan Green of Waterstone Mortgage in his blog.

(Read more: What to Expect from Interest Rates This Year)

While refinances may suffer under even slightly higher rates, more important to the housing recovery is new mortgages to purchase homes. Purchase applications are still running at half the rate they were in 2007, when last the Dow hit a new high. Small moves in mortgage rates do affect purchasing power, but lending standards are a far bigger driver today. New regulations for lenders and a consolidation of lending overall to the mega-banks are certainly slowing, and in some cases stalling, the process for some would-be buyers.

(Read More: Cities That Are Most Prepared for Retirement)

Article source: http://www.cnbc.com/id/100420382

San Jose, CA (PRWEB) April 03, 2012

After the Federal Reserve’s March 2012 Federal Open Market Committee (FOMC) meeting, the future of the nation’s currently low interest rates could be at risk, says Bay Area mortgage broker AccessBanc Mortgage. And now is the time to lock in a good mortgage rate, since there is nowhere for them to go but up.

“There is a lot of room for mortgage rates to rise, but there is not much room for them to fall,” explains Greg Erny, Principle of AccessBanc Mortgage. “The safe play is to get a rate locked now.”

The Fed has said repeatedly that it intends to keep the Fed Funds Rate near 0.000% for an “extended period of time”-through 2014 at least. Unfortunately, this doesn’t mean that conforming mortgage rates and FHA mortgage rates will remain low as well.

Mortgage and FHA rates rise long before Fed Funds Rates in a recovering economy, because they are ultimately an indication of long-term Wall Street attitudes. This is different from Fed Funds Rates, which are usually the outcome of a short-term fix the Fed applies to try to regulate the economy.

“For those individuals who truly want to get a good rate on their mortgage, this is an important time to take advantage of low rates because the only way for rates to go at this point is up,” notes Erny.

The first step for those individuals, says AccessBanc Mortgage, is to make a plan and get a mortgage rate quote. Mortgage rates have remained consistent at historically low levels since 2011, and have only broken 4% within the past few weeks. Following the FOMC meeting, conforming mortgage rates throughout California rose by as much as 0.375%, says Daily Mortgage Advisor, and there is a big chance they will only continue to climb.

According to AccessBanc Mortgage, these rates are a response to the Federal Reserve comments that ignited a mortgage bond selloff by Wall Street, which controls the mortgage rates.

“Locking in mortgage rates now is going to be important because the mortgage rate arena could look drastically different in short order,” says Erny. “Mortgage rates get unpredictable after every FOMC meeting.”

And after the second meeting of the FOMC this year, it’s clear that the economic recovery the nation is seeing is good for stocks and bad for mortgage rates, but the experienced brokers at AccessBanc Mortgage are ready to help lock in loans for interested homebuyers.

For more information about mortgage rate trends, or for information about any of AccessBanc’s products or services, call them at (855) 262-6302 or visit www.accessbanc.com.

About AccessBanc

AccessBanc is a San Francisco Bay Area mortgage broker committed to offering the most seasoned, professional, and competent loan consulting talent available. Because AccessBanc Loan Consultants enjoy favorable lender terms, use state of the art technology, and apply innovative solutions to knowledgeably work the market, they can offer prospective borrowers extremely competitive mortgage rates and great service.

AccessBanc’s services include: refinance, home purchase, first-time homebuyers, conventional conforming loans, jumbo loans, second/vacation homes, investment/rental properties, pre-qualification and pre-approved letters, and home equity loans / lines of credit. From home finance in Marin to first-time homebuyers in San Jose, AccessBanc’s carefully selected Loan Consultant Team can help Bay Area borrowers find the right loan.

AccessBanc Mortgage is a Real Estate Broker licensed by the California Department of Real Estate, License #00892684. NMLS #311147.

For the original version on PRWeb visit: www.prweb.com/releases/prweb2012/4/prweb9361557.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/03/prweb9361557.DTL

San Jose, CA (PRWEB) March 09, 2012

First-time homebuyers are finding their dreams of owning a home more realistic than ever. A stronger job market and record-low home prices and mortgage rates have helped increase home sales in the US, showing positive signs for the housing market. AccessBanc Mortgage, a Bay Area mortgage broker that specializes in helping people buy a home for the first time, says based on the steadily low mortgage rates and increasing home affordability, now is the time to buy.

According to data recently released by the National Association of Realtors, home sales rose to their highest level in January and long-term mortgage rates are the lowest they have been since 1971. Home sales increased 4.3 percent in January 2012 to a seasonally adjusted annual rate of 4.57 million. First-time buyers accounted for 33 percent of transactions in January 2012, compared to 29 percent in January 2011. AccessBanc Mortgage wants to help first-time homebuyers take advantage of upward trends like these showing positive signs for the housing market.

Buying a home can be a confusing and frustrating process, especially for a first timer. AccessBanc Mortgage helps simplify this process for first-time homebuyers in the Bay Area by offering specialized first-time buyer programs, which require a smaller down payment and make loan qualification easier. These programs coupled with historically low mortgage rates make buying a home understandable and affordable.

“We realize that everyone’s dream is to get the keys to their first home and we want to be a part of that once-in-a-lifetime moment,” commented AccessBanc Mortgage Principal Greg Erny. “While rates are low, we want to be able to help people take advantage of a great market.”

For those looking to purchase a new home, the steadily low mortgage rates are essential. Home prices are currently low, and with interest rates at unheard-of lows, people may be surprised to discover the kind of home they can now afford.

“Our expert brokers specialize in guiding first-time homebuyers through the entire mortgage process. Call us today for a free consultation,” invited Erny.

Bay Area mortgage broker AccessBanc is a multilingual office centrally located in San Jose. They have achieved Premier Relationship status with many of America’s largest lenders, giving them the ability to source mortgage loans through more than 100 lenders.

For more information about first-time homebuyer programs or any of AccessBanc’s products or services, call them at (855) 262-6302 or visit www.accessbanc.com.

About AccessBanc

AccessBanc is a San Francisco Bay Area mortgage broker committed to offering the most seasoned, professional, and competent loan consulting talent available. Because AccessBanc Loan Consultants enjoy favorable lender terms, use state of the art technology, and apply innovative solutions to knowledgeably work the market, they can offer prospective borrowers extremely competitive mortgage rates and great service.

AccessBanc’s services include: refinance, home purchase, first-time homebuyers, conventional conforming loans, jumbo loans, second/vacation homes, investment/rental properties, pre-qualification and pre-approved letters, and home equity loans / lines of credit. From home finance in Marin to first-time homebuyers in San Jose, AccessBanc’s carefully selected Loan Consultant Team can help Bay Area borrowers find the right loan.

AccessBanc Mortgage is a Real Estate Broker licensed by the California Department of Real Estate, License #00892684. NMLS #311147.

For the original version on PRWeb visit: www.prweb.com/releases/prwebmortgage-brokers/bay-area/prweb9267735.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/03/09/prweb9267735.DTL

San Jose, CA (PRWEB) October 17, 2011

With the economy bumping along the bottom, and stalemates in Washington preventing any legislative action, many people are starting to talk about a double-dip recession. But AccessBanc Mortgage, a Bay Area mortgage broker, says there is one group benefiting from the bad economy: borrowers. Mortgage-backed securities have recently hit all-time lows, which means interest rates on home loans are at ridiculously low rates, making it an excellent time to refinance a mortgage.

“Right now is an incredible opportunity to get historically low interest rates on a mortgage,” says Greg Erny, a Principal at AccessBanc Mortgage. “If you have been considering taking out or refinancing a mortgage loan, you won’t find a better time to apply. Even if you obtained a loan within the last year, interest rates have probably gone down low enough to refinance again.”

In an attempt to boost the slower-than-expected economic recovery, the Federal Reserve recently began purchasing more long-term bonds and mortgage-backed securities, which has the effect of pushing down long-term interest rates. This year, interest rates on the 30-year Treasury Bond had already hit a 60-year low, and this move by the Fed will most likely push them even lower.

For those looking to purchase a new home, this is great news. Home prices are currently low, and with interest rates at unheard-of lows, people may be surprised to discover the kind of home they can now afford.

For current homeowners, refinancing has never looked better. “If you thought your current mortgage rate was low, you’d better check again. Given these ridiculously low rates, it’s time to call AccessBanc Mortgage to determine whether it is time for you to refinance again,” says Erny.

For more information about historically low interest rates or any of AccessBanc’s products or services, call them at (408) 514-5312 or visit www.accessbanc.com.

About AccessBanc

AccessBanc is a San Francisco Bay Area mortgage broker committed to offering the most seasoned, professional, and competent loan consulting talent available. Because their Loan Consultants enjoy favorable lender terms, use state of the art technology, and apply innovative solutions to knowledgeably work the market, they can offer prospective borrowers extremely competitive mortgage rates and great service.

Their services include: refinance, home purchase, first-time homebuyers, conventional conforming loans, jumbo loans, second/vacation homes, investment/rental properties, pre-qualification and pre-approved letters, and home equity loans / lines of credit. From home finance in Marin to first-time homebuyers in San Jose, AccessBanc’s carefully selected Loan Consultant Team can help Bay Area borrowers find the right loan.

AccessBanc Mortgage is a Real Estate Broker licensed by the California Department of Real Estate, License #00892684. NMLS #311147.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebbay-area-mortgage-broker/san-francisco/prweb8881754.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/17/prweb8881754.DTL

Fannie Mae and Freddie Mac, the private mortgage lending entities under government conservatorship, are set to reduce their maximum conforming loan limit from the current $729,750 to $625,500 on October 1st. Bay Area mortgage broker Eric Leithliter of California Mortgage Advisors says this may adversely affect the Bay Area real estate market, making it harder for homebuyers to get loans and lowering home values. He recommends that people who have been waiting to buy act soon, before the loan ceiling is lowered.

When the financial crisis hit in 2008, the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac tried to combat the tightening home lending market by temporarily raising the limit on conforming single family home loans to $729,750 [for the more expensive counties; some counties have a lower limit], an amount that has been renewed every year since. But in the current political climate, with a focus on reducing the national debt and encouraging private sector action, the federal government seems unlikely to renew the higher conforming loan limit. If congress allows the loan limits to drop, the highest conforming loan limits will go down to $625,500.

“If you have been sitting on the fence, thinking that rates are going to continue to go down, they may want to consider making a move soon. Waiting until later may limit your ability to get a low rate on a single mortgage loan, making it more expensive and time-consuming to buy,” says Eric Leithliter, a Bay Area financial advisor based in Walnut Creek.

Leithliter says that if the conforming loan limit is allowed to drop, it could a negative impact on the local housing market. Nonconforming loans carry a higher interest rate (typically 0.50% to 1.5% above rates for conforming loans), and private banks may be reticent to make large loans because their capital requirements are higher than GSEs like Fannie and Freddy. The likely effect for borrowers is to make credit more expensive and harder to get.

It would also be likely to cause home values to drop even further, which is bad news for sellers. According to the Oakland Tribune, over a quarter of all Bay Area homes are already underwater; if demand is decreased even further, it will be hard for the real estate market to make a recovery.

Leithliter also warns that many banks that use Fannie and Freddy to back mortgages may implement the $625,500 limit prior to the October 1st deadline, in order to process the last of their higher jumbo loans in time to qualify for the current financing rates.

“The signs are pointing to a tightening of the credit market in the near future,” says Leithliter. “Buyers who continue to wait around may come to wish they had acted sooner.”

For more information about the upcoming lowering of conforming loan limit and its impact on the market, or any of Eric Leithliter’s products or services, call him at 415-692-7415 or view him on the web at www.calmtg-ba.com. Connect with Eric Leithliter on Facebook at www.facebook.com/pages/Bay-Area-Mortgage-Guide/160527848509 and follow him on Twitter at http://twitter.com/mortgagecounsel.

About Eric J. Leithliter, California Mortgage Advisors, Inc.

Eric J. Leithliter is a Senior Residential Loan Officer at California Mortgage Advisors, Inc. He is focused on providing his clients education on the current financial market conditions and how this effects their mortgage options today and in the future. He began as a loan processor and underwriter and became an expert in all facets of the lending industry. As a Loan Officer, this background helps Liethliter construct complicated and difficult loans into successful loan closings. He continues to attend underwriting seminars that keep him abreast of all the changing requirements that lenders are implementing in today’s complex lending environment. Leithliter specializes in residential financing, private money financing, commercial financing, short sale and foreclosure transactions, FHA loans, credit analysis and repair, and jumbo mortgage loans in the Bay Area.

Eric J. Leithliter serves the San Francisco Bay Area communities of Walnut Creek, Orinda, Lafayette, Moraga, Alamo, Danville, as well as Marin County, San Francisco, Silicon Valley, and Sonoma County.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebJumbo-Mortgage-Loan/Bay-Area/prweb8560737.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/10/prweb8560737.DTL