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July 27th, 2018 3:03 PM
Mortgage rates moved up slightly over the past week to their highest level since June.

Sales of new homes are slowing and unsold inventory is rising for the first time in three years. 

With mortgage rates increasing affordability is becoming an issue and we may see a drop in the market valuations in spite of a growing economy!

Posted by Kemmer Daniel Matteson on July 27th, 2018 3:03 PMLeave a Comment

May 23rd, 2018 11:44 AM

After leveling off recent weeks, mortgage rates move up to reach a new high last seen seven years ago.

The 30-year fixed mortgage rate edged up to 4.61 percent, which matches the highest level since May 19, 2011.

Consumer spending and higher commodity prices caused bond markets to increase and led to higher mortgage rates over the past week.

While this year’s higher mortgage rates have not caused much of an effect in the strong demand for buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the valuation of home prices.

Many people are refinancing to convert their adjustable rate mortgage to a fixed wile rates are still low, get cash out for hone improvements to there existing homes or paying off debt to free up cash flow for other investments

I would be happy to discuss any and all options or concerns  you may have.

OR Price your own loan  and give me a call for a custom quote..

Posted by Kemmer Daniel Matteson on May 23rd, 2018 11:44 AMLeave a Comment

April 24th, 2018 8:52 AM

Long-term U.S... government bond yields topped 3% for the first time in more than four years The 10-year yield is a barometer that influences borrowing costs for consumers, corporations and state and local governments. Mortgage rates are tied to this and have reached almost 4.5%  see this  article from Government backed funding source. great graphs.

My concern is that the Home affordability index will lesson with higher rates = higher payments and the housing values will slow if not even drop in value. This could trigger another financial situation as so much of the economy is tied to housing.

Many people are refinancing to get cash out for improvements to there existing homes rather than buying new ones or paying off debt to free up cash flow for other investments or simply converting there adjustable rate mortgage to a fixed wile rates are still low.

I would be happy to discuss any and all options or concerns  you may have.

OR Price your own loan  and give me a call for a custom quote..

Posted by Kemmer Daniel Matteson on April 24th, 2018 8:52 AMLeave a Comment

November 16th, 2017 8:40 AM

Posted by Kemmer Daniel Matteson on November 16th, 2017 8:40 AMLeave a Comment

April 8th, 2015 7:07 AM



The answer to that depends on how much less you’re pre-approved for. If the home is truly out of your price range, you really should move on and look for a home that you can afford. However, if the difference between the seller’s asking price and what you’re approved for is a small amount, there are several possible ways to close that gap, including:

• Working with your lender to increase the amount you’re approved for.

• Putting down a larger down payment.

• Negotiating with the seller to lower the price.

Before you do anything else, though, you should talk to your broker. Although it may not always be feasible, some borrowers are able to get approved for a larger amount, especially if the difference between the pre-approval and the asking price is minimal. A pre-approval is not necessarily set in stone, so definitely touch base with your broker. Also, make sure you bring your real estate agent into the loop so that they’re aware of the situation.

Posted by Kemmer Daniel Matteson on April 8th, 2015 7:07 AMLeave a Comment


Your credit score is the number one thing that lenders look at, right? Not according to a survey conducted for credit-scoring company FICO. Nearly 60 percent of credit-risk managers surveyed said that a borrower’s debt-to-income (DTI) ratio is the biggest factor that would make them hesitant to approve a mortgage. A low credit score actually comes in third on the list, behind applicants who have submitted multiple credit applications recently.

In simple terms, your debt-to-income ratio is the percentage of your monthly gross income that goes toward paying all of your debts and liabilities, which includes your mortgage, credit card debt, student loans and other housing expenses. Your DTI ratio is broken down into two parts: front-end ratio and back-end ratio. With a few calculations, you can calculate your own DTI ratio and take steps to improve it.

Your front-end ratio is the percentage of your gross monthly income that goes toward your monthly housing payment. To calculate your front-end DTI ratio, divide your monthly housing payment (principal, interest, insurance, taxes, etc.) by your pre-tax monthly income. As a general guideline, you’ll want your monthly housing payment to be less than 28 percent of your gross monthly income. If it’s higher, that may be a red flag if you’re applying for a mortgage, although there is some flexibility in some cases.

The second part—your back-end ratio—measures your gross monthly income against all of your recurring monthly debts and liabilities and is generally considered the more important component of your overall DTI ratio. To calculate your back-end ratio, divide your total monthly credit card debt, student or personal loans, housing expenses, etc. by your pre-tax monthly income. Under the new Qualified Mortgage rules passed by the Consumer Finance Protection Bureau in 2014, most mortgages require a back-end ratio of 43 percent or less, although some Fannie Mae and Freddie Mac loans do allow for a higher debt-to-income ratio if the applicant has strong credit. Generally, a back-end ratio of 36 percent or less is considered a good goal if you’re looking to get a new mortgage.

If your back-end ratio exceeds the targeted percentage, there are ways to fix it. The most direct way to improve your ratio is to start paying down your recurring debt, such as the monthly balances on your credit cards. Paying down debt is usually much easier and more feasible than taking the reverse route of increasing your monthly income.

If you’re considering buying a home or refinancing in the near future, you’ll need to start working on your DTI ratio as soon as possible.

Posted by Kemmer Daniel Matteson on April 8th, 2015 7:05 AMLeave a Comment

April 8th, 2015 7:03 AM


If you’re looking to get a mortgage in California when you relocate to take a new job, it may not be as difficult as you think. Here is what you need to know when you are relocating for your job and you want to buy a home in California, the must knows about how to get the right mortgage loan in California.

Even though you may be between jobs (at least technically), these situations are fairly common. If you can understand the situation from the point of view of your lender and know what your options are, you should be able to get the mortgage—and the home—that you want.

Lenders will look at three aspects of your income: history, amount and stability. That may seem like two strikes against you—with only income history going for you—but just because you’re getting a new job doesn’t mean that you’ve suddenly become a lending risk. If your new job is in the same industry and the pay is equal to or greater than that of your prior job, many lenders will consider that as a sort of continuation of your old job. Also, keep in mind that there are other factors—such as your credit score and debt-to-income ratio—that a lender will consider besides income.

In most cases, you’ll have several different options in terms of getting a mortgage when you relocate. A lender may want proof of at least 30 days of employment at your new job, so closing on a new home immediately may be tricky, but there may be ways to get around this. For example, if you have an offer letter—or, better yet, an employment contract—a lender may approve your loan as long as your start date is before the date you close on your new home. If that’s not feasible, most lenders offer loan products that are specifically geared to these situations.

The bottom line is this: Lenders deal with people relocating for a new job on a regular basis and they will certainly do their very best to get you into your new home.

Whether you have been mulling over the idea of buying your first home in California or fifteenth home, it may be a very wise financial decision to finally pull the trigger on buying a new home in California this year.

Here are five reasons why:

1. Having a mortgage loan can be less expensive than paying rent. Rental rates have been climbing and the latest numbers show a 6.1 percent year-over-year increase. In many areas, the average monthly rent is higher than the average monthly mortgage. Or, look at it this way: Making a mortgage payment is an investment into your equity, whereas making a rental payment is not.

2. California Home prices are still reasonable in most areas. As we mentioned, home prices are rising in many areas, but not as fast as they were two years ago or even last year, when prices rose slightly above 4.0 percent nationally. Although all real estate markets are different, prices in many cities and markets are significantly lower than they were at the peak of the housing boom back in 2006.

3. Interest rates are low for all types of mortgages. Whether you’re looking for a 30-year fixed-rate, a 15-year fixed-rate, a jumbo loan, or an adjustable rate mortgage, the interest rates are definitely in your favor right now. Currently, the rates are at the lowest levels they’ve been since May of 2013. Along with home prices, this is an area in which you can save quite a bit of money.

4. Getting a mortgage loan with a down payment of 3 percent just got easier.Although there are some restrictions, you can now get a mortgage backed by Fannie Mae or Freddie Mac that has a down payment requirement as low as 3.0 percent (Fannie began backing such loans in December and Freddie will begin on March 23). You now have two more options to go along with the other low down payment loans.

5. Buying a California home is a good investment—especially as a long-term investment.Real estate is one of the best investments. Yes, the housing market is cyclical and there are plenty of ups and downs, but right now we’re seeing an upswing in many markets and this is a good time to be a buyer. In the long term, real estate is an especially good investment—as long as you’re willing to ride out any declines in prices and values.

It’s important to remember that real estate is always in flux and market conditions can change very quickly—especially home prices and interest rates—so don’t wait to buy if you’re ready.

Posted by Kemmer Daniel Matteson on March 31st, 2015 9:59 PMLeave a Comment

March 31st, 2015 1:05 PM
The most attractive aspect of a loan backed by the Federal Housing Administration (FHA) is the low down payment requirement. If you qualify for an FHA loan, that could mean a down payment as low as 3.5 percent. Also, interest rates on FHA loans are the lowest they’ve been in almost two years.

The bad news is this: FHA loans do require mortgage insurance premiums (MIP), which can be quite costly. However, there is also good news: The FHA just lowered the monthly mortgage insurance requirement by one half of one percentage point. This could mean hundreds of dollars of savings each month.

For the past several years, the FHA—which insures roughly 20 percent of all mortgages—had imposed costly mortgage insurance premiums on borrowers in order to fund its cash reserves. As recently as last year, the FHA needed a cash infusion from the U.S. Treasury, but improved loan performance and rising home values increased its capital reserve balance by the end of 2014. In turn, the FHA decided that it would lower its MIP requirements by 0.5 percentage points—from 1.35 percent to only 0.85 percent for a 30-year loan with a loan-to-value ratio of 95 percent or more.

What could this mean for you? Like we said, the monthly savings could run in the hundreds of dollars. Although upfront mortgage insurance required on FHA loans remains unchanged, the monthly cost—which is the one that really matters—has been significantly reduced for FHA loans of $625,000 or less.

FHA loans have become more popular lately and these loans have helped many people buy over the last five years. Although not every borrower qualifies for an FHA-backed loan—and it may not be the right loan for many borrowers—if you do qualify, this new lower MIP is definitely good news

Posted by Kemmer Daniel Matteson on March 31st, 2015 1:05 PMLeave a Comment

January 22nd, 2015 4:27 PM

California mortgage rates hit new lows today. First California Financial specializes in only California clients and our rates are the lowest in almost two years since the spike up. This will not last as the stock market volatility will settle down and fund will pull out of mortgage market and rates will go up.

With the Federal government poised to increase rates new spring NOW is the time to get out of your adjustable rate mortgages and lock into a fixed rate.  Go to our website and see the rate graph for 1 year and two year California rates.  Then go to our free rate quote for custom pricing.

We will probably never see California rates this low again this is your opportunity to lock into a great deal. Get out of that adjustable rate loan or combine you first and second into a new single fixed rate loan.

Posted by Kemmer Daniel Matteson on January 22nd, 2015 4:27 PMLeave a Comment