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).
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