by traviss on September 2, 2010
HUD Finally Issues Confirmation of Changes to FHA MI Premium Structure!!
Mortgagee Letter 2010-28 states that HUD has decided to raise the annual premium and lower the upfront premium, except for Home Equity Conversion Mortgages (HECM), so that FHA is in a better position to address the increased demands of the marketplace and return the Mutual Mortgage Insurance (MMI) fund to congressionally mandated levels without disruption to the housing market. Below is the chart, effective for cases assigned on and after 10/04/2010:
| As per Mortgagee Letter 2010-28, the following premiums will be required for cases assigned on and after October 4, 2010: |
|
Loan Type |
Up- Front MI Premium |
Annual Premiums |
| Terms Greater
than 15 yrs |
Terms less
than or = 15 yrs |
| Purchase Money |
1.00% |
>95% LTV = .90
<95% LTV = .85 |
>90% LTV = .25
<90% LTV = n/a |
| Full Credit Qualifying Refinance |
>95% LTV = .90
<95% LTV = .85 |
>90% LTV = .25
<90% LTV = n/a |
| Streamline Refinance |
>95% LTV = .90
<95% LTV = .85 |
>90% LTV = .25
<90% LTV = n/a |
The upfront and annual premiums and the requirements described apply to all mortgages insured under FHA’s Single Family Insurance Programs except the following: Title I, HOPE for Homeowners (H4H), Section 247 (Hawaiian Homelands), Section 248 (Indian Reservations), Section 223(e) (declining neighborhoods), Section 238(c) (Military Impact areas in Georgia and New York).
by traviss on September 1, 2010
Do you want to buy a house
with no money down? |
| USDA Rural Development can help you!
Lenders and USDA Rural Development have teamed up to provide 100% financing to individuals and families who buy a home in a rural area.
- Zero down payment required
- No mortgage insurance needed*
- Closing costs payment can come from any source
- Easy qualification criteria
- Not limited to first time homebuyers
The USDA Rural Development loan program has helped many home buyers just like you. |
| To see if you qualify, Call today. |
by traviss on August 26, 2010
| |
| What is a Debt-to-Income Ratio? |
 |
One of the quickest & most revealing ways to get a handle on your current financial picture is to calculate your debt-to-income ratio. |
|
| Lenders look at your debt-to-income ratio when they are considering if you are credit-worthy.
Your debt-to-income ratio is calculated by dividing monthly minimum debt payments (excluding mortgage or rent payments) by monthly gross income.
For example, someone with a gross monthly income of $3,500 who is making minimum payments of $700 on loans and credit cards has a debt-to-income ratio of 20 percent ($700/$3500 = .20) |
| Call me for your financial needs. |
|
by traviss on August 23, 2010
This week’s video update…click here
The Importance of having a good FICO score!
| Week of: Monday, August 23, 2010 |
|
Present Market Conditions
Fixed rate mortgages reached yet another low as the 30 year rate ended the week at 4.42% with .7% point. Low inflation and weak economic data resulted in continued investor demand for bonds and the drift toward slightly lower rates. “Investors in long-term bonds appear very confident inflation will remain in check, and as a result long-term fixed mortgage rates have continued to fall. This week marks the ninth straight week in the Primary Mortgage Market Survey® that 30-year-fixed mortgage rates have met or set a new record low”, according to Amy Crews Cutts, deputy chief economist, Freddie Mac.
Expectations
This week’s fundamental announcements kick off with Tuesday’s Existing Home Sales followed by New Home Sales on Wednesday. Jobless Claims post on Thursday and Friday will bring the Gross Domestic product (GDP) Report.
Guidance
Rates continue to challenge historic lows. Now is a prime opportunity to meet with your mortgage advisor to structure a loan to meet your financial needs.
by traviss on August 16, 2010
This week’s video update…click here
| Week of: Monday, August 16, 2010 |
|
Present Market Conditions
“Interest rates for fixed mortgages and 5-year hybrid ARMs again broke record lows last week following reports of a sluggish job market.” stated Frank Nothaft, chief economist for Freddie Mac. He continued by saying “The low rates have triggered a pickup in refinancing, which accounted for more than 80 percent of conventional loan applications in recent weeks. Freddie Mac’s analysis of second quarter refinances found that consumers overwhelmingly chose fixed-rate products, and many shortened their terms from 30 years to 20 or 15 years, which allow faster principal paydowns.” “The low rates are also helping to heal many battered local housing markets by increasing home-purchase activity. The National Association of Realtors® reported that 65 percent of the 155 metropolitan areas they track experienced yearly house-price increases in the second quarter of this year.”
Expectations
A busy Tuesday will keep investor’s focus with the release of the Housing Starts, Industrial Production and the Producer Price Index (PPI). Other reports that may impact investor decisions are Monday’s Empire State Manufacturing Index along with Thursday’s release of the Philly Fed Manufacturing Index and Leading Indicators report.
Guidance
With rates continuing to hold at historic lows, now is the best time to meet with your mortgage professional to discuss a mortgage solution to meet your financial goals.
by traviss on August 10, 2010
Today’s FOMC meeting has adjourned with no change to key short-term interest rates. However, the post-meeting statement did give us a bit of a surprise that was quite favorable to the bond market and mortgage rates. In the statement the Fed indicated that they expect the economy to grow at a slower pace than estimated at the last FOMC meeting in late June. They renewed their “subdued” outlook for inflation, which is the key point for the bond market and the indication that they expect to keep key interest rates at their current level for an “extended period.” That leads market participants to believe that the Fed is still concerned about the economy’s ability to expand and maintain momentum.
The surprise came from an announcement that the Fed will use funds from its holdings in mortgage bonds to buy more government debt. What this means is that the Fed is taking its interest payments and reinvesting them into the economic recovery. This will be a much smaller campaign than we saw from them last year and early this year, but it is still considered good news. The goal is to help keep long-term interest rates low, such as home mortgage rates and corporate bond rates, in an effort to spur more spending and economic activity. The general consensus is that the impact this will have on the economy is minimal, but it does show that the Fed is attentive to current conditions and is ready to take more measures if needed.
