Orange County Banks Brace For Hit As Mortgage Demand Begins To Slow

Orange County Mortgage Brokers have known for a while the recent mortgage boom has been slowing down and many people have been wondering how this is going to affect the bottom lines of banks across the country.

A Shining Light In A Slow Economy?

Even though mortgage industry experts are expecting coming statistics to show that mortgage originations have slowed down in the last quarter, Orange County Mortgage Brokers are still in agreement that mortgage business has been the bright spot that has continued to help the struggling economy.

In order to beat the bad news out of the gate, some lenders like U.S. Bank are already announcing that their mortgage income from the first quarter of this year will be down by 15% or more.

Kevin Kabat, CEO of Bankcorp has said that they didn’t expect mortgages to decline as quickly as they have, and many of the industry’s top analysts like: Ken Usdin are also bracing financial industry watchers and investors to expect profits from lenders originating mortgages to be down by as much as 20% or more.

What’s The Reason For The Decline?

According to analysts in the Mortgage Bankers Association, the decline in mortgage originations in Orange County and across the country is completely normal since homeowners across the country typically refinance their homes in phases or waves of activity that can be tied to the rise and fall in interest rates.

Not Bad News For All Banks?

Even though most banks are telling investors to be ready for bad news, not every bank has been affected, one bank in particular: Sanford C. Bernstein & Co. has said that they only expect their mortgage originations to fall by just 10%

To learn more about the latest mortgage industry news or to get a quote for an Orange County Mortgage Loan, contact Sun Financial Group today by calling us at (949) 699-1950. 

Still Searching For Reasons Why You Should Refinance Your Orange County Home?

Why refinance an Orange County Mortgage?

If you’re still waiting for mortgage interest rates to go lower, the truth is that with the economy improving and more people working than in the last four years, mortgage interest rates are only going to go up, that’s why it’s important to refinance your Orange County mortgage loan this month.

Refinancing Will Save You Money

The first reason why you should refinance your Orange County mortgage is that it will save you money every month; and that money can be spent on other things to make your life easier like: paying down student loan debt, saving for the future, paying off car loans or just saving for a vacation.

Lose The Adjustable Rate Mortgage

One of the worst things to come out of the last 10 years was a wave of adjustable rate mortgages that ultimately trapped Orange County homeowners into paying high mortgage payments; if you still are stuck with an adjustable rate mortgage loan, you can refinance it to a much lower rate and save yourself hundreds of dollars per month off your mortgage payment.

Purchase A Second Home

Another great benefit that comes from refinancing an Orange County Mortgage is that it gives a homeowner flexibility and cash flow to purchase a second home or “income property”.

Anyone who has watched television lately knows that there is a huge opportunity for income properties right now, especially in Orange County and across Southern California.

To get started with buying income properties, you will need cash flow and there’s no better way to tap into ready cash by refinancing your home.

Find Out How Easy Refinancing Is

To learn more about the benefits of refinancing your Orange County home, contact the experienced team of Orange County mortgage brokers at Sun Financial Group today by calling us locally at (949) 699-1950 for a free consultation.

We look forward to saving you money off your mortgage loan every month and helping you to improve your life. 

Yes It's Still Hard To Get A Mortgage Loan

If you ask any Orange County Mortgage Broker or Orange County Realtors what their thoughts are on the current Real Estate Market, they will agree that it’s growing fast but for many hard working Orange County Residents, the Real Estate Market is out of reach to them because, they aren’t able to get an Orange County Mortgage Loan.

Fed Reserve Governor Express Concern

Elizabeth Duke, the Federal Reserve Governor, recently expressed concern over the lack of growth in the mortgage market and how hard it is for people to obtain mortgage loans in Orange County and across the United States.

Duke confirmed that she doesn’t want to see lenders relax on their lending criteria and start giving borrowers mortgage loans similar to those mortgage loans that were common in 2005-2006 but she did echo the sentiment of many Orange County Mortgage brokers that serious changes to the mortgage industry must be made because, most borrowers with credit scores that are in the 680 range are still unable to obtain mortgage loans.

What’s The Solution To The Problem?

As of April 2013, the mortgage industry still has strict restrictions on who can qualify for a mortgage loan because, due to low home prices combined with record job losses, lenders like Freddie Mac and Fannie Mae are concerned about creating another wave of record defaults if borrowers who should never been qualified for mortgage loans end up defaulting.

On the flip side of the problem is that thanks to the Federal Governments efforts to keep interest rates at record lows, lenders like Freddie, Fannie, Wells Fargo and Bank of America haven’t had to work as hard as in recent past because, low mortgage interest rates have created a “surge” in refinancing across the United States so it’s anyone’s guess if and when the credit “criteria” that most lenders have will ever be relaxed so the average borrower with a low credit score can qualify for a mortgage loan.

To refinance your existing Orange County Mortgage Loan or to see if you qualify for a mortgage, contact Sun Financial Group today for a free consultation at (949) 699-1950.