Here is some mortgage rate news that is catching a lot of people by surprise – mortgage rates have dropped below the 5 percent level. Now the mortgage companies, and the entire real estate industry, are waiting to see if these historically low mortgage rates will convert into more people buying homes and refinancing their existing mortgages. The Wall Street Journal is reporting that the low mortgage rates are happening as a result of the financial trouble that is unfolding in Europe. As the European financial markets continue to become more unstable, international investors are pushing their money into the U.S. in an attempt to seek safer grounds for their investments. The international in flow of investors has pushed mortgage rates here in the US to the lowest levels of the year – and back near 50-year lows, according to the Wall Street Journal. The housing industry had been bracing for a period of rising mortgage rates, triggered by the end of the Federal Reserve’s $1.25 trillion mortgage-securities purchase program. Instead, the WSJ writes, many in the industry now say rates could drift as low as 4.5 percent this summer from 4.86 percent now, instead of rising to 6 percent as some economists projected. That makes for significantly lower payments for buying homes or refinancing mortgages. Mortgage Rates prime for refinance The drop in mortgage rates creates a perfect environment for refinance your existing mortgages. With mortgage rates creeping down to near 50 year lows, you are sure to be able to find some great mortgage rates for your next refinance. CURRENT RATES from First Savings Mortgage Corp. Conforming 30 year is 4.75% and 0 total points 4.5% is 1 pt Conforming 7 year ARM is 4% and 0 pts Conforming 5 year ARM is 3,625% and 0 pts Conforming Jumbo (over $417k to 729,750) is 4.875% and 0 total and 4.625% is 1pt FHA 30 year is 4.625% and 0 pts and 4.375% and 1 pt FHA Jumbo (over $417k- $729,750) 4.75% and 0 pts and 4.375% and 1.5 pts The ability to get loans is most flexible in the loan amount cap of $729,750. You can buy a house for $756,000 and go FHA with 3.5% in this area. You can do conventional with PMI with 5% down up to $417,000 and with 10% down up to $729,750 loan. That means if you don't want to go FHA you can still put 10% down on a $800,000 house. The quickest way to get your loan approved is to Apply Online at www.kenbyrne.net (Free and No Obligation!)

Homeowner owes more than his home is worth, and since it is an FHA loan, this short sale took a little longer than others to get approved. This homewoner needed to avoid foreclosure on his home on Colonial Avenue in Sterling, VA. Chase has agreed to do a short sale with proceeds paid out to HUD, but with stipulations you can read below. One very positive highlight is, they’ve agreed to pay an incentive to the homeowner for closing the deal quickly – $1,000 at closing payable to the seller. The letter can be hard to read, so if you have any questions, feel free to call me at 703-400-6757 or email me at jennifer@jyhteam.com . If you know anyone I can help, let me know!

Investor Alert! Here is an Indymac foreclosure that we just put on the market for 116K last night. We already have cash offers and I think it will take 120-125K to get the property. It has some nice updates-kitchen, roof, etc.. but has a small area of mold in the basement and the bathroom has to be remodeled. It is a great price though, and it would be cash flow positive if you got an investor loan on it. See how the #s break down below: Purchase price of 125K with 25% down = $31,250 down, $93,750 loan amount. $93,750 @ 5.75 interest rate, 30 year fixed = $547 monthly taxes = $120 Hazard insurance = $50 Total Monthly outlay = $717 Average monthly rent = $1300/mo Total positive cash flow = $583 a month. *I think it would take about 5-7K to get it to average condition and able to be rented for this. Could be less but I think this is pretty accurate. Click the following URL to see the listing: http://mrislistings.mris.com/Matrix/Public/Portal.aspx?ID=36530881318 Let me know if you need more info or would like to see it. Thanks and have a great day!

After months of criticism that it hasn't done enough to prevent foreclosures, the Obama administration is announcing a plan to reduce the amount some troubled borrowers owe on their home loans. The effort would allow people who owe more on their mortgages than their properties are worth get new loans backed by the Federal Housing Administration, a government agency that insures home loans against default.

This proposal would be funded by $14 billion from the administration's existing $75 billion foreclosure-prevention program. In addition, the homeowner's existing mortgage company can get incentives to lower the principal balances on underwater loans. The program also includes assistance to help unemployed homeowners keep paying their mortgages.

Here's how it would work...Under the plan, lenders would grant three months forbearance to homeowners who are out of work, according to two administration officials. To help borrowers who have been hurt by falling home prices, the government also will require mortgage servicers to consider cutting a loan's principal if it is up to 15% more than the home is worth, officials said. The principal would be reduced over three years as long as the borrower stays current on payments. In addition, servicers will get more incentives - double the amount the government now pays to lenders - if they reduce the unpaid balance of second loans.

The changes reflect a new attack by the Obama administration to address the foreclosure crisis, which at first was driven by subprime mortgages going delinquent, and now is being fueled by unemployment. The current program provides modified mortgages to homeowners who show proof of income. "The cost is going to depend on the participation rate. In terms of the cost to taxpayers, the cost of not doing something is greater than doing something," says Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable. "Up to now, there was no government program to help the unemployed, and that was the biggest problem."

The current federal program, known as the Home Affordable Modification Program (HAMP), is aimed at helping up to 4 million Americans avoid foreclosure. So far, about 170,000 homeowners have been granted permanent modifications with lower monthly payments through the plan.

Also Thursday, the Treasury Department announced new measures that buy time for some borrowers to avoid losing their homes to foreclosure. Lenders soon will be unable to start foreclosures unless they've determined borrowers aren't eligible for a modification.

Other changes announced Thursday will provide other protections for troubled homeowners. They include:

•Ensuring servicers intervene once two or more mortgage payments are missed and actively solicit borrowers for the federal program.

•Setting a 30-day deadline for lenders to decide applications for trial modifications.

•Requiring servicers to consider borrowers who file for bankruptcy-court protection for the HAMP program if the borrower, their lawyer or bankruptcy trustee make a request.

The four big holders of second mortgages -Citigroup, Bank of America , Wells Fargo and JPMorgan Chase - have now joined the government's program to modify second mortgages. That program was delayed for months but with Citi on board, the major players in the industry are now participating.

Critics have complained that the Obama administration has done little until now to encourage banks to cut borrowers' principal balances on their primary loans. Nearly one in every three homeowners with a mortgage are "under water" - they owe more than their property is worth - according to Moody's Economy.com.

After months of criticism that it hasn't done enough to prevent foreclosures, the Obama administration is announcing a plan to reduce the amount some troubled borrowers owe on their home loans. The effort would allow people who owe more on their mortgages than their properties are worth get new loans backed by the Federal Housing Administration, a government agency that insures home loans against default.

This proposal would be funded by $14 billion from the administration's existing $75 billion foreclosure-prevention program. In addition, the homeowner's existing mortgage company can get incentives to lower the principal balances on underwater loans. The program also includes assistance to help unemployed homeowners keep paying their mortgages.

Here's how it would work...Under the plan, lenders would grant three months forbearance to homeowners who are out of work, according to two administration officials. To help borrowers who have been hurt by falling home prices, the government also will require mortgage servicers to consider cutting a loan's principal if it is up to 15% more than the home is worth, officials said. The principal would be reduced over three years as long as the borrower stays current on payments. In addition, servicers will get more incentives - double the amount the government now pays to lenders - if they reduce the unpaid balance of second loans.

The changes reflect a new attack by the Obama administration to address the foreclosure crisis, which at first was driven by subprime mortgages going delinquent, and now is being fueled by unemployment. The current program provides modified mortgages to homeowners who show proof of income. "The cost is going to depend on the participation rate. In terms of the cost to taxpayers, the cost of not doing something is greater than doing something," says Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable. "Up to now, there was no government program to help the unemployed, and that was the biggest problem."

The current federal program, known as the Home Affordable Modification Program (HAMP), is aimed at helping up to 4 million Americans avoid foreclosure. So far, about 170,000 homeowners have been granted permanent modifications with lower monthly payments through the plan.

Also Thursday, the Treasury Department announced new measures that buy time for some borrowers to avoid losing their homes to foreclosure. Lenders soon will be unable to start foreclosures unless they've determined borrowers aren't eligible for a modification.

Other changes announced Thursday will provide other protections for troubled homeowners. They include:

•Ensuring servicers intervene once two or more mortgage payments are missed and actively solicit borrowers for the federal program.

•Setting a 30-day deadline for lenders to decide applications for trial modifications.

•Requiring servicers to consider borrowers who file for bankruptcy-court protection for the HAMP program if the borrower, their lawyer or bankruptcy trustee make a request.

The four big holders of second mortgages -Citigroup, Bank of America , Wells Fargo and JPMorgan Chase - have now joined the government's program to modify second mortgages. That program was delayed for months but with Citi on board, the major players in the industry are now participating.

Critics have complained that the Obama administration has done little until now to encourage banks to cut borrowers' principal balances on their primary loans. Nearly one in every three homeowners with a mortgage are "under water" - they owe more than their property is worth - according to Moody's Economy.com.

After months of criticism that it hasn't done enough to prevent foreclosures, the Obama administration is announcing a plan to reduce the amount some troubled borrowers owe on their home loans. The effort would allow people who owe more on their mortgages than their properties are worth get new loans backed by the Federal Housing Administration, a government agency that insures home loans against default.

This proposal would be funded by $14 billion from the administration's existing $75 billion foreclosure-prevention program. In addition, the homeowner's existing mortgage company can get incentives to lower the principal balances on underwater loans. The program also includes assistance to help unemployed homeowners keep paying their mortgages.

Here's how it would work...Under the plan, lenders would grant three months forbearance to homeowners who are out of work, according to two administration officials. To help borrowers who have been hurt by falling home prices, the government also will require mortgage servicers to consider cutting a loan's principal if it is up to 15% more than the home is worth, officials said. The principal would be reduced over three years as long as the borrower stays current on payments. In addition, servicers will get more incentives - double the amount the government now pays to lenders - if they reduce the unpaid balance of second loans.

The changes reflect a new attack by the Obama administration to address the foreclosure crisis, which at first was driven by subprime mortgages going delinquent, and now is being fueled by unemployment. The current program provides modified mortgages to homeowners who show proof of income. "The cost is going to depend on the participation rate. In terms of the cost to taxpayers, the cost of not doing something is greater than doing something," says Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable. "Up to now, there was no government program to help the unemployed, and that was the biggest problem."

The current federal program, known as the Home Affordable Modification Program (HAMP), is aimed at helping up to 4 million Americans avoid foreclosure. So far, about 170,000 homeowners have been granted permanent modifications with lower monthly payments through the plan.

Also Thursday, the Treasury Department announced new measures that buy time for some borrowers to avoid losing their homes to foreclosure. Lenders soon will be unable to start foreclosures unless they've determined borrowers aren't eligible for a modification.

Other changes announced Thursday will provide other protections for troubled homeowners. They include:

•Ensuring servicers intervene once two or more mortgage payments are missed and actively solicit borrowers for the federal program.

•Setting a 30-day deadline for lenders to decide applications for trial modifications.

•Requiring servicers to consider borrowers who file for bankruptcy-court protection for the HAMP program if the borrower, their lawyer or bankruptcy trustee make a request.

The four big holders of second mortgages -Citigroup, Bank of America , Wells Fargo and JPMorgan Chase - have now joined the government's program to modify second mortgages. That program was delayed for months but with Citi on board, the major players in the industry are now participating.

Critics have complained that the Obama administration has done little until now to encourage banks to cut borrowers' principal balances on their primary loans. Nearly one in every three homeowners with a mortgage are "under water" - they owe more than their property is worth - according to Moody's Economy.com.

Bank of America Short Sale Approval for Manassas, Virginia home. Home owner is upside down but will walk away from mortgage owing nothing to her lender! Call Jennifer Young today if you need help anywhere in Virginia…703-400-6757. Jennifer Young Homes closes, on average, 4-5 short sales per month!

Home owner is upside down by $125,000 and will walk away from mortgage owing nothing to their lender! Call Jennifer Young today if you need help anywhere in Virginia…703-400-6757.

The Federal Housing Administration, which is supporting the housing market by insuring thousands of new mortgages every day, is expected to announce on Wednesday that it is tightening standards. Borrowers who get an F.H.A.-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of the loan, up from 1.75 percent. Starting this summer, sellers will not be able to offer as much help to buyers to pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent. While most borrowers will still be able to make a down payment of 3.5%, lower scores will require higher down payment.

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS Measure to help bring stability to home values and accelerate sale of vacant properties WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions: * All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. * In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions. * The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program. Click the link below to access the announcement from the FHA web site: FHA 90 Day Flipping Waiver The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions: * All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. * In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions. * The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.