San Diego Refinance

CLTV - CLTV, also know as Closing Loan to Value, is the percentage of how much a house is worth compared to how much is owed on all mortgages on the property.
Example: House is worth $300,000 and 1st mortgage balance is $130,000 and second mortgage balance is $80,000 (total of mortgages is 130k + 80k = 210k)

A loan that is 100% CLTV means that you owe the same amount that the home is worth - you have no equity.

Many times you will need to do a second mortgage at a different bank than the first, as to avoid a conflict - due to Combined Loan to Value(CLTV) guideline restrictions on the first mortgage that is also financed by the same bank.

CLTV is also referred to as combined loan to value and is used by lenders to figure the overal risk of a loan. The higher the combined loan amount compared to the properties value will affect what programs and rates you will qualify for.

Reasons to Not Prepay Your Mortgage - There are detriments to prepaying your mortgage. One such detriment would be that you would be spending cash that could decrease your financial liquidity.

If your money can produce net returns of more than the interest rate on your mortgage, you should not pre-pay your mortgage.

Prepaying your mortgage will eliminate the tax deduction you gain by paying interest on your mortgage. This can have a negative overall affect. You should consult with your CPA or accountant on this issue.

You need to make sure you ask questions about prepayment penalties when you are obtaining a mortgage. A pre-payment penalty is something that is charged by some lenders if their loans are paid off within a certain time-frame. A prepayment penalty also can be charged if you prepay too much during the course of a year. An example is, some lenders may penalize you if you prepay your home loan by more than 20% of its original balance during any one year for the first 3 years.

Mortgage REITs - Mortgage REITs involve investment and ownership of property mortgages. This particular type of REITs loan money for mortgages to owners of real estate, or invest in (purchase) existing mortgages or mortgage backed securities. A Mortgage REITs revenues are generated mostly by the interest earned on the mortgage loans.

The acronyms REIT stand for Real Estate Investment Trusts. They pool money from investors for the purposes of purchasing real property or in the case of mortgage REITs for the purpose of making money available for mortgage loans.

REITs will offer high yields to investors and a liquid method of investing in real estate. They also receive some tax considerations.

Money from mortgage REIT investors has allowed us to offer borrowers thousands of new loan programs, like Zero Down Mortgage / No Money Down Mortgage, Pay Option ARM, 40 year mortgage and more.