Inspira Group Orange County Real Estate Blog

Yesterday I was showing homes in Ladera Ranch to a nice family looking to purchase their first home. We arrived at an Open House where the Realtor greeted us and started telling us about the home. Before I could even get my bearings, I was being told about this feature and that feature and how this home was great. My mind shut off quickly as I just wanted to be with the home and inquire what my clients that they thought of this home.

We walked upstairs and I was happy to finally be able to look around and understand the dynamics of the home and see if it was a possibility for my clients. We stopped in the master bedroom and I asked them what they thought? “Oh no!” The agent walks in and tells us the homeowner just replaced the bathroom floor with tile and how the community has good parking and is freeway close and where he lives in relationship to the home and how this community is perfect.

Every borrower makes a decision to lock or not lock (float). This is often an emotional choice because the pricing on a loan changes daily and sometimes intra-day. As a mortgage professional, I find this part of the business challenging because market movements are out of our control.

The process is very similar to the stock market, prices change day to day, even minute to minute. We are not the hero if pricing improves nor the villain is pricing gets worse.

We can only do our best with the information available. Over the years, I have come up with 4 rules.

Depending upon where your home search takes you in California, you will likely hear the term “Mello-Roos.” Just what is Mello-Roos? In a nutshell, Mello-Roos is a special tax that homeowners pay in certain communities to fund bonds that support the infrastructure of that community. 

A Closer Look at Mello-Roos

In 1982, The Mello-Roos Community Facilities District Act was enacted as an alternative financing plan for municipal improvements and services. Named for California State Senator Henry Mello and Assemblyman Mike Ross, the Act was passed as a response to Proposition 13 which limited the ability of local governments to finance new projects. Mello-Roos allows any school district, city, county, or joint powers of authority to establish what is known as a Mello-Roos Community Facilities District.

These districts supplement services such as police, fire, ambulance, infrastructure, libraries, museums, cultural facilities, parks, schools, and sewer system through bonds; which are paid for by a special tax assessed to homeowners in those districts. So, is Mello-Roos good, or is it bad?