Rising Property Values Enable Consumers To Refinance Their Home Loans And Reduce Their Monthly Payments
STANTON, Calif., Dec. 11, 2013 /PRNewswire/ -- As home prices rebound, consumers are increasingly refinancing their mortgages and reducing their monthly payments.
"This is a trend we're seeing across California," said Art Bermudez, a mortgage broker with Stanton, Calif.-based ChoiceLend.com. "A lot of our clients are back in the real estate game because they now have equity once again."
"Higher home values are enabling consumers to pay off second mortgages, obtain lower interest rates, convert their loans from adjustable to fixed-rate loans and eliminate mortgage insurance requirements," he said.
Bermudez's recent clients include Phil Davis of San Diego, who refinanced his three-bedroom, two-bath, 1,800-square-foot home in November.
"The payment before I refinanced was $3,300 a month. Now I am paying about $2,800 a month," he said, adding that rising property values and the increased equity in his home enabled him to avoid having to pay for mortgage insurance.
Matthew Handlen of Whittier refinanced his 1,720-square foot, four-bedroom, two-bath home last summer. While he purchased the home in May of 2010 for $370,000, property values in Handlen's neighborhood have increased to $425,000 to $450,000, enabling him to refinance his loan and eliminate the mortgage insurance, which he had to pay on his previous loan because he had only put 10 percent down. His new payment is about $450 to $500 less than he was paying before.
Michael Chiprich, a 32-year-old sales manager from Brentwood, in the San Francisco Bay area, said he was able to lower his monthly payments by $300 by refinancing. "We went from a 30-year FHA loan to a 30-year fixed loan with a better interest rate," he said.
"Although he purchased his home recently, in 2010, property values have been increasing, which made refinancing possible," he said.
For more information on residential real estate loans, refinancing and the latest trends involving mortgage insurance, please contact Art Bermudez at (714) 248-9772 and visit www.ChoiceLend.com.