First Time Home Buyer Archives - California Platinum Loans

2023 Mortgage Rate Trends: Expert Predictions on 30-Year Fixed & ARM Rates and What Does It Mean for Your Home Loan?

Each year, various finance industries, real estate professional associations, and government-backed organizations like Freddie Mac predict mortgage interest rate trends. These predictions sometimes differ, and there’s no guarantee that they will be accurate. However, February is the time of the year when these mortgage rate predictions tend to solidify, and different experts weigh in. Current forecasts on mortgage rates vary between 5% and 7% for 2023, depending on the expert source. When interest rates go down, the housing market tends to heat up, so if you’re in the market to buy a home or refinance in 2023, it’s a good idea to keep an eye on trends in mortgage rates.

Encouraging Mortgage Rate Forecasts

Some mortgage rate predictions show an encouraging trend of lower or steady mortgage interest rates for 2023.

First, Compass, Inc.’s Regional President Neda Navab predicts that mortgage rates are at or near their peak as of the beginning of 2023 and could be around 5% by the end of the year, thanks to the slowdown in inflation and lower U.S. Treasury bond yields that impact mortgage rates.

Another prediction from the Mortgage Bankers Association (MBA) says that “long-term rates have already peaked.” The MBA says that mortgage rates will end the year at a precise 5.2%. The MBA comprises of industry leaders, direct experts, and the leading power players originating the loans, making their predictions carry a lot of weight.

Less Optimistic Mortgage Rate Forecasts

Freddie Mac, one of the two government-sponsored home mortgage enterprises, and Fannie Mae predict that the average 30-year mortgage rate will be 6.6% at the beginning of 2023 and end the year at about 6.2%, an entire point higher than the Mortgage Banking Association.

An economist with Realtor.com, Jiayi Xu, predicts that ongoing inflation will keep mortgage rates in the 6% to 7% range in 2023.

The National Association of Realtors (NAR)’s senior economist Nadia Evangelou says that mortgage rates could end 2023 at slightly under 6% as long as inflation continues to slow down.

Adjustable rate mortgages (ARMS) offer lower interest rates than fixed-rate mortgages. Working with an experienced broker like California Platinum Realty and Loans can provide you with more choices in a mortgage that can fit your financial goals and objectives, along with delivering a home purchase loan or a refinance. Contact California Platinum Loans to discuss your options in home mortgages today.

Discover the First-Time Homebuyer Program in LA: Your Guide to Los Angeles Homeownership Today

Does Los Angeles have a first-time homebuyer program? Yes, and there are two of them. The City of Los Angeles Housing and Community Investment Department (HCIDLA) offers a program to help first-time home buyers, and so does the County of Los Angeles through the Los Angeles County Development Authority (LACDA).

One important thing to remember about most first-time homebuyer programs: it’s not always the case that an applicant has never bought or owned a home before. You must not have owned a home during the last three years to qualify for the programs. And you need to live in the house that you buy.

What Do the Different LA First-Time Home Buyer Programs Provide?

The City of Los Angeles provides the LIPA (Low Income Purchase Assistance) program, which can provide up to $140,000 for purchase assistance. LIPA funding can cover down payments and closing costs. The program can help with single-family home purchase prices up to $973,750 and condo or townhome purchases of $593,750. The LIPA program is available for home purchases within the incorporated City of Los Angeles.

The County of Los Angeles Home Ownership Program (HOP) is a second mortgage loan for first-time homebuyers that can provide up to $85,000 or 20% of the home purchase price, whichever is less. It is a zero-interest loan with deferred payment.

Who Is Eligible For First-Time Homebuyer Programs?

The first-time homebuyer programs are intended to assist low- to moderate-income home buyers. Los Angeles County’s program eligibility limits are 80% of the County median income, which is $95,300 for a family of four. The City of Los Angeles LIPA program is also capped at 80% of the County’s median income. Still, the City also has a moderate-income first-time homebuyer program which will go up to 150% of the median income.

You can’t own any other real estate to be eligible for these programs. The programs are intended for people who are buying a home to live in.

You must also meet minimum credit score requirements, with a FICO score of at least 660.

Using a First-Time Homebuyer Program to Buy a Home in LA County or the City of Los Angeles

California Platinum Loans is an experienced, caring, and responsive mortgage broker who can assist you in accessing first-time homebuyer programs to help you buy the home you need and want. You can combine first-time homebuyer programs with a home loan that fits your needs. Contact California Platinum Loans today to get started making your home ownership dreams a reality.

Urgent Homebuyers Alert: Take Control of Your Los Angeles Home Search Today, with This Comprehensive Guide to Mortgage Pre-Approval

If you’re looking to buy a home in Los Angeles, there are several steps you can take to be prepared and be able to buy the home you absolutely desire. One of the most critical steps is getting pre-approved for a mortgage.

The Difference Between Pre-Approval and Pre-Qualification

You may hear different terms regarding the steps you can take before you make an offer on a home or receive a mortgage loan.

Pre-qualification isn’t as in-depth a process as pre-approval. If you are pre-qualified for a mortgage loan, lenders will do a “soft pull” of your credit score to see where you fit in the credit spectrum. With your financial data, lenders can usually give you a rough idea of the loan size you can qualify for and offer a pre-qualification letter.

Mortgage pre-approval is a more in-depth process. You need to provide documentation of your income and other financial information. The mortgage lender will formally request your credit score, also known as a “hard inquiry.” They will respond with a pre-approval letter containing much more detailed information and a more accurate idea of the amount of home loan you can obtain.

What Do You Need To Get Pre-Approved For a Mortgage?

You should collect the following documents to provide to your mortgage lender:

Proof of income, which can include paystubs, self-employment documentation, and tax returns.
Proof of assets can include bank statements and other financial or property account documentation.
Credit score and credit history.
Verification of employment.
Valid government-issued identification

The mortgage lender will also look at your debt-to-income ratio. If you already have other debts, these will be factored into your pre-approval.

A mortgage pre-approval letter will help you to know how much home you can afford. It places you in a much stronger position when looking for a home to buy in Los Angeles. California Platinum Loans works with numerous lenders, including banks, non-banks, other institutional lenders, private money lenders, hedge funds, private equity, and some hard money lenders. California Platinum Loans can help you get the right type of mortgage pre-approval when the time is right.

First Time Home Buyer