Aundrea Beach-Greco's Mortgage Blog: Keeping you in the know

Doctors, lawyers, even beauticians adhere to strict education requirements and licensing. Do you want someone who is not bound to those standards looking at your credit and finances? Consult a CMPS™ today!

Posted by Aundrea Beach-Greco on April 5th, 2012 8:20 PMPost a Comment (0)

New FHA rule will affect credit for homebuyers as of April 1st

March 28th, 2012 12:19 PM

New FHA changes effective 4/1/2012:

Disputed Accounts on a Credit Report
If the cumulative amount owed exceeds $1000, the dispute must be resolved or paid in full prior to the closing of the buyer’s new loan. The exception to this rule is the underwriter overrides this requirement if the buyer has made payment arrangements with the creditor and can show they have made a minimum of 3 monthly on-time payments. If a borrower has made arrangements but has only made their first payment, they will be required to make two more monthly payments consecutively before loan approval will be authorized.

Disputed accounts that are a direct result of identity theft, credit card theft or unauthorized abuse by another party may be excluded from this $1000 limit. The buyer would be required to provide proof to their lender. An example might be a police report, showing you reported this abuse to the proper authorities.

Disputed credit accounts more than two years old, and credit disputes linked to possible identity theft will not be included.

Consider getting your disputed issues on your credit report cleared before you pursue financing. Then once the loan has closed you can often reopen the dispute at no consequence.

Collection Accounts on a Credit Report
If the cumulative amount owed to a collection company exceeds $1000, it must be paid in full prior to loan approval. Again, FHA will exclude this provision if the borrower has made payment arrangement and has shown a 3-month history of consecutive payments.

If the aggregate amount is less than $1000, the buyer will NOT be required to pay off the collection account prior to close of escrow.

Judgments on a Credit Report
The same rules apply for judgments, with the exception of the minimum amount. All judgments must be paid prior to loan approval or the buyer must show they have arrangements with the creditor and can show they have made 3 on-time payments.

Medical Collections on a Credit Report
The new guideline for medical collections is the real kicker. Buyer’s beware – medical collections are now included, where they were omitted in the previous guidelines.

A bigger concern for buyers is the stiff increase in FHA mortgage insurance that will go into effect April 9, 2012.

The upfront premium of 1% of the loan amount will increase to 1.75% and the monthly insurance premiums will rise from 1.15% to 1.35%.

With this change, we are worried that thousands of potential buyers will be unable to secure a new mortgage once the rule comes into force. Experts say as many as 30 to 50% of potential homebuyers could be affected.

With that said, buyers need to know that if they have a collection accounts over $1000, they immediately must start the loan process and have a home under contract prior to April 1, 2012. Otherwise, all collection accounts would have to be paid in full.

http://portal.hud.gov/hudportal/documents/huddoc?id=12-03ml.pdf

If I can help in any way, please call or email me!

Yours Very Truly,

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA

Posted by Aundrea Beach-Greco on March 28th, 2012 12:19 PMPost a Comment (0)

FHA 203(k) for Foreclosure Fix-Ups

March 27th, 2012 1:18 PM

FHA 203(k) allows you to finance repairs

There are some great bargains right now in foreclosed homes but they often aren't in the best of shape. Fortunately, the FHA's 203(k) program allows you to both buy a house and fix it up with a single mortgage loan.

The FHA 203(k) mortgage is designed for fixer-uppers. You can borrow up to $35,000 to pay for the home improvements.

Many foreclosures need repairs

Foreclosed properties can be in poor condition for a number of reasons. To begin with, if the previous owners couldn't make their mortgage payments, they probably didn't keep up with routine maintenance either. Second, foreclosures often stand vacant for a long time before they are purchased, and may deteriorate during that time. Finally, homeowners facing foreclosure sometimes remove appliances and other items of value, or simply damage the property to spite the bank.

On the plus side, these are some of the reasons why foreclosures sell at a discount in the first place. Quite often, they can be purchased and put back into shape for considerably less than you would spend on a conventional home purchase with only minor upgrades needed.

Option for basic improvements

The FHA 203(k) loan allows you to finance modest improvements, like a new roof, new appliances, kitchen remodeling, repairs or upgrades to heating, electrical and plumbing system, floor repairs, basement refinishing and the like. This will allow you to borrow up to $35,000 for the improvements.

Limited to owner-occupants

The FHA 203(k) loan program is limited to owner-occupants - you must live in the home once renovations are complete. However, the loans can be used to purchase and improve multiunit homes of up to four units, provided that you make one your residence. The loans can also be used to divide a single-unit home into multiple units, or turn a multiunit property into a single-family residence.

Not all FHA lenders deal in 203(k) loans, so you may have to do some looking around to find one who knows how to handle them. You can also expect a somewhat longer closing period than on a regular FHA mortgage, usually about 45-60 days.

Contact Aundrea at RMS and we can handle your FHA 203k.

Buying a foreclosure

When shopping for a foreclosure to buy and rehab with an FHA 203(k) mortgage, your best bet is to focus on what are known as real estate owned (REO) properties. These are bank-owned properties that went unclaimed at the foreclosure auction. The reasons for doing this is that 1) you can't arrange FHA financing for properties bid on at a foreclosure auction and 2) you can inspect and assess a bank-owned property beforehand.

Finally, FHA 203(k) mortgages are not just limited to foreclosures - you can use one to buy a home through a conventional purchase and rehabilitate it as well. But with all the discounted foreclosed properties on the market these days, that's likely where you'll find your best opportunities.

If you have further questions, please contact us directly.

Yours Very Truly,

Aundrea Beach-Greco

Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047

eFax (888) 738-5188

Toll Free ( 877) AUNDREA

Posted by Aundrea Beach-Greco on March 27th, 2012 1:18 PMPost a Comment (0)

How Many Times Can You Refinance With The FHA Streamline Refinance?

March 26th, 2012 8:08 AM

Question:

How many times can someone refinance their home with the FHA streamline refinance mortgage program?

Answer:

As many times as it makes sense.

Often, when interest rates trend downward, it can make sense for someone to refinance their mortgage multiple times within a relatively short period of time. For example if interest rates go from 8 percent to 5 percent over a 2 year period of time, it may make sense for someone to refinance their 8% mortgage to 7% and then 6% and then 5%. It might not make sense, but it might — and it all depends on the numbers...

This is why there is a test called the “net tangible benefit test” so that your mortgage professional, AUNDREA ANDTHE BEACH-GRECO TEAM, can make sure that refinancing makes sense for you and that the benefits of refinancing outweigh the costs that are associated with refinancing.

The FHA streamline refinance program is no exception — as long as you pass the net tangible benefit test, you can participate in the FHA streamline refinance program as often as you it makes sense — even if you have participated in the FHA streamline refinance program recently. If your case can pass the net tangible benefit test, then you have the green light for the FHA streamline refinance program… or at least as far as FHA is concerned you do. The proposed new payment must be at least a 5% reduction in total housing expense from your existing housing expense.

Whether it makes sense to you is a different story though....

Call me and we can see if you pass the net tangible benefit test and how we can save you some money.

Yours Very Truly,

Aundrea Beach-Greco

Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047

eFax (888) 738-5188

Toll Free ( 877) AUNDREA

Posted by Aundrea Beach-Greco on March 26th, 2012 8:08 AMPost a Comment (0)

Gov't Aid for FHA Streamline Refinances!

March 25th, 2012 9:15 AM

HUD recently announced some major changes to their mortgage insurance premiums this past week that could potentially help a lot of current FHA mortgage holders by doing what is called an FHA streamlined refinance. For the past year many home owners who currently have a FHA mortgage have not been able to taken advantage of the low rates because of the increased FHA mortgage insurance premiums that have gone up and are going up in April 2012.

Well, HUD finally decided to make a positive change and reduce their mortgage insurance premiums on FHA streamlined refinances. However, it is important to note that this will apply only to existing FHA loans that were endorsed prior to Jun 1, 2009.

What does that mean? When your loan was endorsed could be a completely different date from when you actually closed on your home loan. HUD can take up to a couple of months after your loan has closed to endorse or “insure” your FHA mortgage. For example, someone may have closed on their home in March of 2009 and their mortgage may not have been endorsed by HUD until after June 2009 and therefore will not qualify for the reduced mortgage insurance rates.

If you are located anywhere in Nevada, I am happy to help you with your current FHA refinance and help you to determine when your endorsement date was. Important***** If your mortgage was endorsed by HUD prior to June 1^st, 2009, you will want to consider waiting until June 11^th, 2012. Mortgage insurance premiums will be dropped, for those who qualify based on the endorsement date.

Here is what the drop in mortgage insurance premiums will look like:

0.01% for the upfront funding fee from 1.0%

The monthly Mortgage Insurance will be cut in half to 0.55%

Here are the key points to why this is a big deal for Nevada Homeowners:

1) Many Nevada Homeowner’s have lost considerable value or are upside down in their home. The FHA streamline does not require an appraisal.

2) Most homeowner’s who purchased at this time more than likely have a rate of somewhere between 5% to 6%. Doing a streamline refinance at the increased mortgage insurance rates would have no benefit to the borrower; in many cases it may have cost them money.

3) Lower mortgage insurance rates will equate to less cost and lower payments which will in turn save more people more money.

This new initiative in the FHA streamline refinance will likely save many homeowners $100 to $400 a month in payments. Why not take that savings and do principle reductions essentially turning your 30 year mortgage into a 15 to 20 year term! The result? Huge savings in interest paid.

Remember, even if you are underwater, you can benefit from doing an FHA streamline with no appraisal.

Yours Very Truly,

Aundrea Beach-Greco

Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047

eFax (888) 738-5188

Toll Free ( 877) AUNDREA

Posted by Aundrea Beach-Greco on March 25th, 2012 9:15 AMPost a Comment (0)

Changes to FHA MIP: Realtors and Current Buyers need to know!

March 24th, 2012 11:56 AM

FHA Changes Mortgage Insurance Premiums

Mortgagee Letter 2012-04 announces changes to all standard single family forward mortgages. This ML makes official the announcements made via recent HUD press releases.

Here are the 5 Things You Need to Know About These Changes:

1. Effective April 9^th, 2012, Annual MIP will increase for all standard FHA loans < $625,000.

2. Effective June 11^th, 2012, Annual MIP will increase for all standard FHA loans > $625,000.

3. Loans with a 15 year term and an LTV < 78% remain exempt from the Annual MIP.

4. Effective June 11^th, 2012, for streamline refinances of loans that were endorsed on or before May 31^st, 2009, qualify for an Annual MIP of 0.55% and an Up Front Premium of 0.01%.

5. Effective April 9^th, 2012, the Upfront MIP is increased to 1.75% for all standard FHA loans.

To read this update in full and view the new MIP rate charts.*

http://portal.hud.gov/hudportal/documents/huddoc?id=12-04ml.pdf

* Please note that the effective date of June 11^th, 2012 for loan amounts < $625,000 (listed on the chart on page 3 of the Mortgagee Letter) may actually be April 9^th,2012; FHA will need to clarify this.

Yours Very Truly,

Aundrea Beach-Greco

Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047

eFax (888) 738-5188

Toll Free ( 877) AUNDREA

info@aundreabeach.com

www.AundreaBeach.com| www.TailorMyMortgage.com

Doctors, lawyers, even beauticians adhere to strict education requirements and licensing. Do you want someone who is not bound to those standards looking at your credit and finances? Consult a CMPS™ today!

Posted by Aundrea Beach-Greco on March 24th, 2012 11:56 AMPost a Comment (0)

FHA changes to Mortgage Insurance as of 4/1/12

March 2nd, 2012 5:54 PM

FHA TAKES ADDITIONAL STEPS TO BOLSTER CAPITAL RESERVES

New premium structure will help protect FHA’s MMI fund.

WASHINGTON – As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.

These premium changes will impact new loans insured by FHA beginning in April and June of 2012. Details will soon be published in a Mortgagee Letter to FHA-approved lenders.

“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market,” said Galante. “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.

FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month. These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan. Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.
Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013.
###
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.

BOTTOM LINE: Get your FHA contract in and get a FHA case number before the mortgage insurance increase! If you are far from an approved purchase agreement, get with your lender (if it isn't me) to make sure you still qualify at the higher UFMIP rate.

HERE'S WHAT IT WILL LOOK LIKE:
April 1, 2012 Loan Analysis Comparison Proposed FHA Mortgage Insurance

Sales Price $100,000
Interest Rate 4%
Down Payment 3.50%
Base Loan Amount $96,500

Prior to April 1, 2012 VS Post April 1, 2012

UFMIP 1.0% $965.00 VS UFMIP 1.75% $1,688.75
Total Loan Amount $97,465 VS Total Loan Amount $98,188
Annual MIP 1.15% $92.48 VS Annual MIP 1.25% $100.52

Principle/Interest $465.31 VS Principal/Interest $468.76

PI + MIP $557.79 VS PI + MIP $569.28

Difference $11.49

As always, let me know if I can be of assistance. I'm here to help!

Posted by Aundrea Beach-Greco on March 2nd, 2012 5:54 PMPost a Comment (0)

Foreign Nationals...Financing is available

February 16th, 2012 3:27 PM

2-16-12

Foreign National Loans: Now Available!

Our knowledge of the international markets allows us to work with excellent programs and opportunities for foreign nationals. Most clients come from overseas and are looking to find mortgages to finance their US vacation home or second home. Based on our experience, we are able to offer a variety of products and services. We know that international clients have different needs and culture, so we work close to each client in order to completely satisfy those needs. Our international loan programs are tailored to each individual’s objective.

Residential Loan Programs Highlights:

-Types of Programs: Fixed loans & Adjustable Rate Mortgages.
-Payment Features: NO pre-payment penalties. Clients can pay off the entire loan or make additional payments without any penalties.
- Minimum loan amount $100,000
- Owner Occupied or Second Home
- US bank account required
- Self-employed OK
- No previous bankruptcies or foreclosures permitted
- Borrowers who are politically exposed are not eligible; All must be cleared through the OFAC SND list

Required Documentation:

- Valid Passport and Visa to enter to the US
- Copy of the last 3 bank Statement
- International Credit Report – Min FICO 680
- Down payment and reserves money held in US bank account
- Four credit reference letters
- Two banking reference letters
- For Self-employed: Accountant’s letter stating the last 3 years of income
- Employees: Employer’s letter stating the last 3 years of income

Foreign National ~ useful information:

1. Different type of US nonimmigrant visas: VISA MATRIX
2. International clients buy properties for different reasons: vacation homes, second homes, investments. Therefore, we know each customer is unique and that is why we also offer several mortgage programs to fit your needs. Do not hesitate to contact us, we can answer any questions and we can help you with all your financing requirements.

RMS Says “Yes” When Others Say “No”
Speak with Aundrea today at (702) 326-7866 or (877) AUNDREA

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services
Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA
info@aundreabeach.com
www.AundreaBeach.com | www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on February 16th, 2012 3:27 PMPost a Comment (0)

Documents That Help You Maximize Real Estate Tax Breaks

February 1st, 2012 7:18 PM

The benefits of being a homeowner are felt all year long, but at tax time it gets even sweeter

Technically speaking, tax day isn't until April 15th. But for Americans who expect a refund—including many homeowners who want to cash in on real estate related tax perks—filing early means quicker cash in hand.

If you count yourself in that number, you'll like our handy guide which outlines 9 ways to help reap every penny of the tax rewards you're earned by virtue of owning a home. Just round up these pieces of paper as you prepare to file and see what your home can do for you.

1. Mortgage Interest Statement - IRS Form 1098. The meatiest real estate tax deduction on the books is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year - including prepaid interest or points you might have paid at close of escrow, if you bought a home last year. By now, you should have received in the mail a Form 1098 from your mortgage lender that reports how much that interest totaled up to in 2011. If you itemize your taxes and claim a mortgage interest deduction, you must include this form with your tax form when you file.

(If you haven’t received yours yet, most lenders that have online account management services also post the form digitally in your secure account on the web. Just login like you would to make your monthly payment, and look for a notice that says you can now download your 2011 Form 1098.)

2. Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state. You are not allowed to deduct some of the other miscellaneous expenses that some localities bundle up with the taxes they collect, like waste management and local assessments for things like street lighting, libraries and sidewalk construction. To get this deduction right, the best practice is to have your property tax statements at hand and make sure you’re only deducting what’s allowed.

If you bought your home this year, it’s highly possible that you might not even have received a property tax statement yet - if that’s the case, look to #3, below.

3. Uniform Settlement Statement (HUD-1). If you bought or sold a home last year, right after closing you should have received a form called the HUD-1 Settlement Statement (hint: it’s usually on legal-sized paper and contains an accounting of credits and debits for you and your home’s buyer or seller). That form documents a number of line items which might help you out at tax time, including prepaid interest, the prorated property taxes you paid at closing, and closing costs like original fees and discount points. Some states offer tax credits for buying a foreclosure; check with your tax pro to find out if any such credits apply to you. If so, this statement might be your ticket to lower taxes.

And here’s another handy hint - if you can’t find your copy, you might have gotten it on a disk - and you can always email your real estate or escrow agent for a copy, as well. BUT.... If your Aundrea's client who has closed a transaction last year, yours is already in the mail!

4. Moving Expense Receipts. Moving expenses are tax deductible, if your move is closely related, both in time and in place, to the start of work at a new or changed job location and you meet the IRS’ time and distance tests. Long story short, your new home must be at least 50 miles farther from your new workplace than your old home was from your prior place of work, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you’ll need to include receipts from expenses you incurred making the move (meals not included) in your tax prep paperwork.

5. Cancellation of Debt Statement - IRS Form 1099. Homeowners who lost a home to foreclosure, or completed a short sale or deed in lieu of foreclosure with their lender might receive some version of Form 1099 from their lenders, charging them with income in the amount of the mortgage debt that has been canceled. You see, if you borrow money from someone, then they cancel the debt, that money you originally borrowed becomes income in the eyes of the IRS - and income is, as you know, taxable.

6. Utility statements for a home office. For the average everyday homeowner who works at their employer’s place of business, utilities are not deductible (sorry!). But if there is a part of your home that is “regularly and exclusively” used for business, you might be able to claim that portion of your home as a home office, and deduct some portion of your home utilities and costs of painting and repairs, as a result. Talk with your tax provider about what expenses are allowable to be claimed under your home office deduction, and whether or not you should take it.

7. Income and Expense statements from rental properties. Some of you have elevated the art of home ownership to a business! If you are a landlord, your tax situation is more complicated; you’ll need to have complete income and expense statements when you put your tax returns together. It might actually behoove you to consult with a tax professional to make sure you are appropriately depreciating the property over time and not taking deductions that will expose you to the risk of audits, as well as to begin cultivating a long-term tax strategy for your real estate portfolio.

8. Contractor receipts from energy efficient home improvements. Under the Nonbusiness Energy Tax Credit, homeowners who have made improvements to their homes that fall within a list of energy efficient upgrades might be eligible to claim tax credits. If, during 2011, you installed energy efficient improvements such as insulation, new dual-paned windows and furnaces, you might be eligible for a tax credit of 10% of the cost of these upgrades, up to $500 - only $200 of which may be used to offset the cost of windows.

9. Mortgage Credit Certificate (MCC). If you own a home you bought in the last few years using a Mortgage Credit Certificate issued by a local housing authority, that Certificate may entitle you to a pretty hefty tax credit, based on a percentage of the mortgage interest you paid - on top of your mortgage interest deduction. MCCs apply as long as you live in the home and have a mortgage on it, but they only apply to defray taxes you actually owe - you can’t use them to get a refund. In any event, your mortgage credit certificate, if you have one, is a must-have document as you start putting your tax prep plan in play.

No matter what your tax situation is, if you own a home, it absolutely cannot hurt to get some professional help and advice to make sure you maximize your deductions, while minimizing your exposure to audit. Turbo Tax may not be sufficient for your needs. And you should always consult with a realtor, tax attorney or certified public accountant regarding your tax liabilities and implications when you buy, sell, short sell or lose a home to foreclosure.

If you need a recommendation to a CPA or tax preparer, please don’t hesitate to contact me.

Yours Very Truly,

Aundrea Beach-Greco

The Beach-Greco Team
Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services
Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA
info@aundreabeach.com
www.AundreaBeach.com | www.TailorMyMortgage.com

Doctors, lawyers, even beauticians adhere to strict education requirements and licensing. Do you want someone who is not bound to those standards looking at your credit and finances? Consult a CMPS™ today!

Posted by Aundrea Beach-Greco on February 1st, 2012 7:18 PMPost a Comment (0)

FHA Mortgage Rates Remain Below 4%...For Now...

January 31st, 2012 9:15 AM

1-31-12

FHA loan rates have stayed relatively steady, and below 4.00% on average throughout the US last week, though fees on these government backed loans are set to increase later this year, according to a mortgage rate research website. In December 2011, Congress voted to offset the expense of a payroll tax extension with an increase in mortgage fees for conventional loans sold to Fannie Mae and Freddie Mac, and for FHA loans backed by the Federal Housing Administration.

For FHA mortgages the additional fee will be in the form of a 0.1 percentage point increase in the mortgage insurance premium paid by mortgage holders. The FHA has yet to release information on when the fee increase will take place.

Though the fee increase is small, it will mean a slightly higher payment for new FHA borrowers after it goes into affect. Current FHA mortgage holders will not be impacted, nor with those who close their loans before the implementation of the increase. If an existing FHA loan is refinanced into a new Fannie Mae, Freddie Mac, or FHA mortgage after the fee rises it will be in place on the new loan.

An increase of $10 to $20 per month probably isn't going to make the difference of someone qualifying for a loan, or change whether it's affordable, but with rates as low, or close to as low as they have ever been, and some additional costs on the horizon, it is certainly advisable to consider an FHA refinance or purchase loan now rather than waiting.

If I can help in any way or answer questions, please don't hesitate to contact me.

Getting pre-approved for a home loan doesn't cost anything - but your time.

info@aundreabeach.com
www.AundreaBeach.com | www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on January 31st, 2012 9:15 AMPost a Comment (0)