Real estate, Real Estate Market Statistics, Santa Clarita Valley, Uncategorized

March 2018 Santa Clarita Valley Real Estate Market Stats


Historical Rates Blue (Large)

Mortgage Rates, Real estate, Santa Clarita Valley, Uncategorized

Historical Mortgage Rates: Averages & Trends from 1971 – 2017

Mortgage Rates, Real estate

Mortgage Rates Surge to Highest Levels in More Than 3 Years

Mortgage rates are in trouble . This will come as no surprise to regular readers. For the past few weeks, rates made several successive runs up to the highest levels in more than 9 months. It was really only the spring of 2017 that stood in the way of rates being the highest since early 2014. After Friday marked another “highest in 9 months” day, it would only have taken a moderate movement to break into the “3+ year” territory. The move ended up being even bigger. From a week and a half ago, most…


Real estate, Santa Clarita Valley

Santa Clarita Valley Real Estate Stats December 2017

Real estate

Expert Insights: What Is Amortization and Negative Amortization?


When you amortize a loan you basically pay off the principal by making regular installment payments. This typically takes place gradually over several years.

Negative amortization is when the mortgage payment is smaller than the interest that is due, which causes the loan balance to increase rather than decrease. Negative amortization only happens with adjustable rate mortgages (ARMs) with certain features, including an initial payment that does not cover the interest due, a feature that is supposed to increase the affordability of the loan.

With negative amortization, a persistent rise in interest rates reduces the equity in the house unless the negative amortization is offset by house appreciation.

Negative amortization has to be repaid, which means your payment will rise in the future. The larger the negative amortization, the more you will be required to amortize the loan in full.