Payoff Your HERO Loan

Have your property taxes increased due to recent home improvements made?

Do you have a higher mortgage payment due to escrow shortage or reassessed taxes?

You are not alone.   As of 2018, over 100,000 homeowners in California have new special tax assessments added to their property taxes through programs like HERO, Cal First, PACE, CHFA and others.

Typical assessment amounts range from $3,000 to $9,000 per year and sometimes even higher.

These assessments are actually high interest rate loans that were aggressively marketed to homeowners via door to door salesmen and telemarketing campaigns.   They were portrayed with incentives such as “No payments for 1 year” or “Government backed with tax credits.”

Courtesy Mortgage offers a free analysis to evaluate your tax assessment and determine if there would be a benefit in combining the tax assessment debt with your existing primary mortgage debt to reduce your overall payment.

We have experience in utilizing refinance to payoff HERO, Cal First, PACE or CHFA loans.

If you call or write us, we can provide a no obligation review of your current increased monthly payment vs. a potential new payment with the assessment removed and taxes reduced permanently to original amount.

In California, these tax assessments are considered “super-liens”.   They take priority over any mortgage loan obligation.   For that reason, conventional loan agencies such as Fannie Mae, Freddie Mac as well as VA and FHA no longer allow any refinance or purchase transaction to be completed with tax assessments remaining open.   Any attempt to refinance or sell property without paying off the assessment will become problematic.

There are options to use the equity in your home to payoff these assessments.   Here is a typical example of how this might work:

Current Principal and Interest
$1,600
Current Poperty Tax
$500 (includes $300 monthly special assessment)
Total Payment
$2,100
Current Loan Balance
$240,000
Current Tax Assessment
$40,000

 

New Loan Balance
$280,000
New Principal and Interest
$1,450
New Property Tax
$200
Total Payment
$1,650
Monthly Savings
$450

 

Please get in touch with us to discuss in more detail how to reduce your monthly payment.

You can call us at 619-296-5881 or fill out the Quick Quote request on the right side of this webpage.