NORTHEAST LOS ANGELES REAL ESTATE MARKET STATS 08/23 – 08/30
These zip codes include the Northeast Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.
What is the difference between Amortization and Loan Term
Amortization is the process of paying off a debt by making periodic payments throughout the term of the loan.
Because your monthly mortgage payment is comprised of both Principal and Interest, although the payment amount may stay the same every month, each monthly payment is allocated differently between principal and interest.
At the beginning, each month you are paying mostly interest on the loan, with a small amount going towards payoff of the principal.
As time goes on, that small monthly amount allocated to principal, gradually reduces the principal; and as time goes on less of the payment is allocated to interest, and more is allocated to the principal.
The loan term can be different than the amount of time needed to amortize (full pay off) the loan. For example, that is “Amortized for 30 years, Due in 5 years”. That means the amount of the monthly payment would be the amount calculated for a 30 year amortization. At the end of five years, a balloon payment of the outstanding loan balance would be due.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net.
NORTHEAST LOS ANGELES: OPEN HOUSES FOR SUNDAY AUGUST 30
Listing of Sunday’s Open Houses from I-Tech MLS
Listing of Sunday’s Open Houses from Combined L.A. Westside MLS
Featuring Open Houses in the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon
What Are Loan Points?
Points are a one-time, up-front fee charged by the lender to originate the loan. 1 point equals 1 percent of the loan amount.
If you need a loan of $300,000; one point will be $3,000.
Typically you can obtain a lower interest over the life of the loan by paying higher points up front; or you can obtain lower points up front by paying a higher interest rate over the life of the loan.
You will want to carefully consider which approach best suits your personal financial goals.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net.
What is the Neighborhood Stabilization Program?
The Neighborhood Stabilization Program is part of HUD’s new Neighborhood Stabilization Program (NSP), offered through the Los Angeles Housing Department (LAHD). NSP provides down payment assistance to eligible homebuyers in the form of deferred payment second mortgages.
The goal of NSP is to “stabilize” communities that have suffered from foreclosures and abandonment. The funds loaned by NSP become part of the down payment needed to purchase a foreclosed or abandoned property. The NSP loan is recorded as a second mortgage on the purchased property. Payments on this second NSP mortgage are deferred.
NSP also provides deferred payment loans to repair blighted properties after the property has been purchased.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net. Northeast Financial is an approved NSP Lender.
NORTHEAST LOS ANGELES REAL ESTATE MARKET STATS 08/16 – 08/23
These zip codes include the Northeast Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.
NORTHEAST LOS ANGELES: OPEN HOUSES FOR SUNDAY AUGUST 23
Listing of Sunday’s Open Houses from I-Tech MLS
Listing of Sunday’s Open Houses from Combined L.A. Westside MLS
Featuring Open Houses in the Los Angeles communities of Eagle Rock, Highland Park, Mount Washington, Glassell Park, Sycamore Grove, Garvanza, Montecito Heights, Cypress Park, Lincoln Heights, El Sereno, Monterey Hills, and Hermon.
For homebuyers with less than 10% down, FHA is the only financing available
With the conventional mortgage market disappearing from the financial market, FHA financing is the only option available for homebuyers with less than a 10% down payment. Where the conventional lender requires a FICO of 720 and a down payment of 10%, a borrower may qualify for FHA financing with a FICO in the 600’s and with a down payment of only 3.5%. An additional benefit of an FHA loan is it allows sellers to finance all of the buyer’s costs to close.
If you or someone you know is thinking about buying or refinancing a home, give me a call. A complimentary consultation will determine the right loan for your financial goals and needs.
Interest rates at the beginning of this week were at 5.00%. As of today, August 20, 2009, rates were at 4.75%. As long as inflation is kept under control, rates should stay within the range of 4.5% to 5.5% for the rest of the year. I would expect if rates drop under 4.75% we may see a small refinance boom for those who missed the last wave of low interest rates.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net.
Neighborhood Stabilization Program boundaries
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Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net. Northeast Financial is an approved NSP Lender.
Low Income Purchase Assistance (LIPA)
Los Angeles Housing Department (LAHD) has announced that the Low Income Purchase Assistance (LIPA) program has finally received funding and is effective August 18, 2009.
The program has received $4,142,164 this year and will assist homebuyers on a first come, first serve basis.
The LIPA program offers purchase assistance in the form of a deferred loan of up to $75,000 to low income households for down payment, closing costs, and acquisition financing.
The program is limited to first time buyers who have not had an ownership interest in any real property at any time during the last three (3) years. LIPA funds may be used to assist buyers who purchase a home in the NSP eligible areas only.
Eligible homes must be either approved short sales or conventional equity sales. Unapproved short sales are not eligible. Vacant foreclosed and REO properties are eligible under NSP.
Properties applying under the LIPA program will not be inspected by LAHD.
No rehabilitation/repair loan funds will be made available for properties applying under the LIPA program.
Rehabilitation/repair funds are still available under NSP.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net. Northeast Financial is an approved NSP Lender.