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California Jumbo Mortgage Loan
Since 2001
mortgage interest rates have lowered dramatically. What was
considered a great rate 10 years ago is now almost double what a
great rate is today. People refinance for many reasons and some
more popular than others.
Whether you want to lower your interest rate, reduce your
monthly payment, consolidate debt or just receive cash for any
purpose, Refinancing your mortgage can be a quick and easy
process, sometimes taking only a week or two.
Here are a few terms you should familiarize yourself with.
Understanding your mortgage is key to a quick and easy
refinance.
What is APR?
Scenario - You speak to a mortgage company and you settle on a
4% interest rate. A few days later you receive your loan
documents in the mail and to your surprise the APR is 4.625%.
Why is the APR 4.625%
What Happened - APR or Annual Percentage Rate is not your loan
interest rate. APR is a calculation expressed as a percentage
that represents the true cost of the loan. To calculate your APR
deduct your closing cost from the loan amount and using a
mortgage calculator calculate what tour interest rate would be
with the new loan amount and your mortgage payment.
Another good example is auto loans. Lets say a dealer advertises
1% APR. In actuality the loan is interest free but the 1% APR
represents the cost of the loan.
What is LTV or Loan To Value
LTV is a term used to show the ratio between the value of the
home to the amount you will borrow. Lets say you have a home
that is appraised at $100,000.00. You want to borrow $80,000.
Divide 80,000 by 100,000, You will get .8 or 80% LTV.
What is DTI or Debt to Income Ratio
DTI is also a ratio that shows your future debt compared to your
income.
If your mortgage payment and all reoccurring monthly debt equals
$1000 and you make $2000 a month gross, your DTI would be 50%.
Jumbo Loan Rates is committed in helping you through the refinance
process while explaining your loan in every detail so there are
never any surprises.
How Do I Get Started
Simply complete the secure online form and a California jumbo mortgage loan
representative will contact you when it is convenient to you.
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