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Stock market up, rates up - Constr loans - PMI or FHA? - Rate credits

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Mortgage and Lending with LX Financial LLC

OK, stock markets up - and upward pressure on rates because bonds compete with stocks for investment money. Maybe also renewed confidence in real estate - we'll see. As of now: Lock ASAP! - Paul

PMI or FHA?
Conventional rates are about 0.50% higher. The cost is about the same. FHA is easier to qualify for, you must have it for 5 years (PMI=2 years), and you can refinance without income qualification and without appraisal.

No lender fees - what does that mean?
No application, processing, underwriting, commitment, tax service fees: None. And if you are a firefighter, police officer, teacher, medical worker, or municipal employee you get the money for the appraisal refunded on close!

Construction/Rehab loans
A few options are starting to appear. I will dedicate the next newsletter to it.

Don't forget: Rate credits
It's the opposite of a discount. A rate credit can be helpful to do a refinance without paying cash for the closing costs, or a purchase situation where cash is tight. Below is an example (not a quote) of a $100,000 mortgage. By opting for a 4.75% rate the borrower receives a rate credit of $1,002 on close (and to get a 4.25% rate, the borrower would pay a discount fee of $847).

 

Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Paul -- and yet today's bond market ended up from yesterday.  How contrary the rates/markets can be when we think we finally can figure them out.

Oct 28, 2011 10:32 AM
Paul Luykx
LX Financial LLC - Jersey City, NJ

Yah, don't be too rational about it. You'll get embarrassed a lot! :)

Nov 16, 2011 01:11 PM