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Freddie Mac has released the 2011 third quarter results of its refinance analysis, which show owners of San Diego condos who go into refinancing continue being able to strengthen financially by maintaining or lessening their mortgage loan debt. During this period of the year, more than 80 percent of owners of downtown San Diego condos who decided in refinancing their condominium mortgage maintained the exact loan amount or reduced the principal balance by giving out more cash at the closing table.

Of the borrower-owners of San Diego condos, 47 percent of these who refinanced decided to maintain the same mortgage loan amount. On the other hand, almost 40 percent of refinancing condo owners decided to reduce their principal balance. Borrowers of cash out, particularly those that added significantly to their loan balance represented around 18 percent of refinanced loans. Likewise, the average share in cash-out during the period of 1985 to 2010 was about 46 percent.

The net dollars of equity on downtown San Diego condos that were converted to cash to become part of an inflation-adjusted refinance were at their lowest in 16 years. During 2011's third quarter, $5.3 billion in estimated condo equity figures was cashed out when there was a refinancing of traditional prime-credit condominium mortgages. Such figure was reduced from $6.3 billion during the second quarter of the same year. It was substantially less compared to peak cash-out of 5 years ago, wherein the refinancing volume was $83.7 billion during the year 2006.

Among the refinanced mortgage loans for San Diego condos in the analysis report of Freddie Mac, the mean value changes in collateral properties was in the negative 7 percent above the median; this was before the loan's life of five years. Compared to this is the Freddie Mac Price Index report, which reveals around 25 percent decline in refinance loan within U.S. series between the period of September of 2006 and September of 2011.

Borrowers of San Diego condos, who refinanced during the third quarter of 2011 were able to own properties that held better in their value than the average condo. Likewise, such condominiums were able to reflect major improvements that owners had done on them within the intervening years. Basically, borrowers who refinanced their loans were able to reduce rates by as much as 1.2 percent points in the year 2011. This can be translated to significant savings for the following year.

For more information about Downtown San Diego Condos contact:

Gregg Neuman

1-800-221-2210

Contact the Neuman and Neuman Team

www.SellSanDiego.com

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As the market for San Diego condos and homes continues to struggle, it is obvious that condominium buyers are not prepared to take out any mortgage. It is found out that they know little information about loans. Almost half of prospective buyers of downtown San Diego condos have actually admitted that they have little confidence when it comes to mortgages and how they work. A recent survey on prospective condo buyers was done to determine their knowledge of loans and mortgages, and the results have been at least surprising.

More than half of potential buyers of San Diego condos who participated in the survey have no clear understanding of how adjustable mortgages work. When they were asked in the survey if rates on ARMs reset higher after 5 years, majority of these buyers answered to the affirmative. The fact is that ARMs interest rates will simply make necessary adjustments to the prevailing rates within five years, even when such rates have gone down. Currently, many mortgage borrowers with recently-reset ARMs possess interest rates that are lower than the rates at the time that they got the loan.

In addition to this, one-third of all respondents who are considered to be prospective buyers of downtown San Diego condos have no clear understanding about lender fees. They are not aware that such fees can be negotiable upon; and that they vary from one lender to another. They have similar beliefs that lending companies are mandated by law to get the same amount of fees for appraisals and credit reports. In fact, fees involved in mortgages and loans vary widely. This is the reason why many buyers of San Diego condos can save substantial amount of money by searching for the lowest possible fees.

Consumers normally will not dare to make a move if they are not fully aware of the possible consequences. However, in the case of buying San Diego condos, a lot of buyers commit themselves to the biggest condo loans that they can have in their lifetime even without ample information about mortgage loan products. This should never be the case, since it is detrimental financially to any buyer in the long run. What prospective borrowers must do is to first spend time making research on how mortgages work. Once he is armed with information, this will help him in shopping for the most competitive fees and interest rates. This way, buyers will be able to save significant amount of money.

For more information about Downtown San Diego Condos contact:

Gregg Neuman

1-800-221-2210

Contact the Neuman and Neuman Team

www.SellSanDiego.com

Find More San Diego Real Estate Here!

The number of owners of condominium properties from all across the country, including San Diego condos, who have applied for new condo loan applications have fell considerably. This happened while only a few other borrowers have immediately sought for refinancing on their existing mortgages. Many loan information services, like Informa Research, made suggestions that consumers who purchased and owned San Diego condosmust review existing rates on the Internet to land the best ones with which they can refinance their existing condo loans.

The current reports have shown that the overall mortgage market has considerably slumped by as much as 9.6 percent. This was during the last week of August 26, which was driven mainly by a 12.2 percent drop in refinancing applications according to the most recent weekly statistics drawn by the Mortgage Bankers Association. On the other hand, the number of the latest purchases of San Diego condosactually went up by 0.9 percent; still it remains to be a historically low figure.

While others opt not to refinance, many are taking their own sweet time in making a concrete decision. This is not the right attitude to have; for those owners of San Diego condos who lag behind their mortgage payments, they must hurry in getting all their papers ready to refinance their condo loans. It must be done the soonest time possible since it will be much more difficult to refinance condo loans in the future.

There are new rules that states condominium owners must satisfy credit-related rules in order to be eligible for loan refinancing. This means more difficulty to refinance for those owners of San Diego condos with bad credit since there is no more poor credit mortgage refinancing. There is no other choice but to repair credit to be able to refinance their condo loans. If fast credit repair is impossible, borrowers will be stuck with an expensive mortgage.

On the other hand, those consumers who opt to refinance their current loans drawn out to purchase their San Diego condoscan enjoy a rate that is much lower than their current rates. This can actually reduce the monthly mortgage that they pay by as much as several hundred dollars.

Consumers who decide to refinance may be able to find the lowest possible rates for their mortgage from online mortgage websites. It is obvious that fewer owners of San Diego condos are refinancing today. Real estate experts advise to refinance now, since doing so on a later date will surely be met by more difficulties.

For more information about Downtown San Diego

Condos contact:

Gregg Neuman

1-800-221-2210

Contact the Neuman and Neuman Team

www.SellSanDiego.com

Find More San Diego Real Estate Here!