fha: Is mortgage rate envy a sin?
- 08/01/12 11:41 PM
Is mortgage rate envy a sin? I have no idea, because I am a mortgage banker and not part of the clergy. But I do know that mortgage rate envy is usually based upon misinformation, and prevents mortgage borrowers from thinking clearly. They are so focused on rate that they do not see the whole picture. Focusing solely on the note rate can cause people to make imprudent financial decisions. The annual percentage rate (APR) is the number borrowers should be looking at. APR is defined as the total of all costs imposed on a borrower as a result of granting … (0 comments)
fha: Too good to be true: Mortgage offers in the mail
- 07/04/12 06:58 PM
Every residential property owner is familiar with the too good to be true offers that are always coming in the mail, especially when rates have fallen. Most of these solicitations are based on county records that show the owner of the property and other information that a predatory lender can utilize for the magic mortgage offer. Whenever I need a laugh, I look at these offers, which always turn out to be either bogus or not applicable for the borrower. What the mail offer mortgage brokers are doing is trying to get the phone to ring so they may bait and … (0 comments)
fha: Fees DROPPING for eligible FHA streamline refinances!
- 05/30/12 05:06 PM
It has been some time since we have heard about a government agency dropping fees, but FHA is doing that for FHA mortgages that were insured prior to June 1, 2009. Remember that it may take up to 90 days after the note date for the loan to be insured. If your FHA mortgage closed prior to March 1, 2009, you should be eligible. After March 1, 2009 you should have your mortgage professional check your FHA case number to see if you qualify. The Up Front Mortgage Insurance Premium (UFMIP) is a one time fee collected by FHA and … (0 comments)
fha: FHA fees increasing on April 1, 2012
- 03/07/12 09:48 PM
FHA will increase the upfront mortgage insurance premium by 75% on April 1, 2012. The current upfront fee is 1% and will be increasing to 1.75%. This means that the upfront mortgage insurance on a $300,000 FHA mortgage will increase from $3,000 to $5,250. Additionally, the monthly mortgage insurance, which is currently 1.15% for a mortgage with a loan to value over 95%, will be increasing by 0.1% to 1.25% annually. At a Senate Hearing last week on the state of the housing market, Secretary Donovan indicated that FHA would be reducing premiums for FHA loans that were endorsed on … (1 comments)
fha: Refinancing a condo that has a conventional mortgage
- 02/29/12 06:06 PM
Refinancing an existing mortgage that is either a Federal Housing Administration (FHA) or Veterans Administration (VA) loan it is far simpler than a property that currently has a conventional mortgage. The main reason is that in most cases it will not require a project approval of the Homeowners Owners Association. But the situation may not be hopeless, even if you have a "condotel".
Non agency portfolio products are a great option for someone who has a condo with a mortgage that is not FHA or VA. A portfolio product is a mortgage that a company will hold and service, giving … (0 comments)
fha: Refinancing a condo could be easier than you think!
- 02/22/12 07:09 PM
While obtaining a mortgage to purchase a condominium may present an interesting challenge because of the required project approval on the Home Owners Association (HOA), refinancing a condo could be easier than you would think.
If you have an existing government loan, either FHA or VA, project approval is not required for either a Federal Housing Administration (FHA) "streamline" refinance or VA Internal Rate Reduction Refinancing Loan (IRRRL). Both loans are designed to help people refinance to either a lower interest rate or change from an Adjustable Rate Mortgage (ARM) to a fixed rate mortgage. These loans do not … (0 comments)
fha: This time, the sequel is better than the original
- 02/01/12 10:41 PM
Rarely is a movie sequel better than the original. I feared that HARP II (Home Affordable Refinance Program) would be another empty "cotton candy" promise from Washington with a lot of fluff and no substance. I am happy to see that I was wrong. Recent verified results are making me a lot more optimistic about this program to help homeowners and INVESTORS, who owe more than the property is worth and have been unable to refinance in the past.
Property owners may go to www.fanniemae.com to see if their property is eligible. At present, this program is only for … (1 comments)
fha: FHA ML 11-39 - Maximum Loan Limits in effect until 12/31/2012/ VA funding fees unchanged
- 12/06/11 10:05 PM
The Federal Housing Administration (FHA) has left loan limits unchanged for both forward (purchase and refinance mortgages), as well as Home Equity Conversion Mortgages (HECM). Home Equity Conversion Mortgages are commonly referred to as reverse mortgages and the statutory limit remains unchanged at $ 625,000. These limits will be in effect through 12/31/2012. To lookup the FHA maximum loan limits for a specific county click on the link below or go directly to the FHA website. https://entp.hud.gov/idapp/html/hicost1.cfm After flip flopping back and forth, VA has announced that there will be no change in funding fees from pre October 1, 2011 levels. As always, I look … (0 comments)
fha: Average mortgage rate jumps up. Why average mortgage rates are worthless!
- 10/20/11 02:59 AM
Freddie Mac reported last week that the average on the 30-year fixed mortgage rose sharply from 3.94% to 4.12%, which according to the National Bureau of Economic Research was the lowest rate ever. When looking at this rate it is important to remember that it is an AVERAGE rate. If we measured two people, and one person was 5 feet 8 inches tall and weighed 150 pounds and the other person was 6 feet 4 inches tall and weighed 260 pounds, the average height and weight would be six feet and 205 pounds. Clearly, while this average is accurate, it is worthless. The same thing applies to mortgages. Loan … (0 comments)
fha: Portfolio and Private Money Mortgages
- 08/10/11 11:42 PM
Nature abhors a vacuum. With the tightening in the mortgage market we have seen an increase in portfolio and private, also known as hard money, loans to fill the void created since subprime mortgage products have become extinct. The good news is that borrowers who do not fit in the box for a standard FHA, VA, or conventional mortgage now have options. The bad news is that rates, liquid assets after the closing for reserve requirements, "skin in the game", etc., will probably be higher. Skin in the game is defined as the amount of equity or down payment one has. Once in a great there is still some common sense in the … (1 comments)
fha: Has it become easier to get a mortgage in the last three years?
- 08/04/11 12:01 AM
Has it become easier to get a mortgage in the last three years? Not from what I am seeing. Whether it is a conventional, FHA, or VA mortgage, in most instances, it is harder to obtain a mortgage than it was just three years ago. The good old bad days are gone forever, and the mortgages must meet higher standards with increased documentation for verification. A mortgage must fit precisely into the box with very little wiggle room. Policy and procedure always reflects the worst abuses in the past and we are seeing that now. It is vital to understand how the process works. Underwriters are in essence referees who make … (4 comments)
fha: FHA Is The Way: $ For Remodeling
- 09/27/10 11:57 PM
Many existing homeowners have decided to stay put rather than sell in this market. Other potential homeowners have found a home with a lot of potential that needs some work to make it their dream home. Unless you have lots of equity in your home, getting a second mortgage for remodeling is difficult if not impossible. The solution is a FHA 203k Streamline mortgage. This mortgage will provide you with up to $35,000 for remodeling. The streamline program is for rehab work only. It is not meant for tearing out walls, popping the top, etc. One of the many benefits of this program is that the value, for … (1 comments)
fha: Can you still get a mortgage?
- 06/21/10 11:51 PM
You do not have to be Bill Gates to get a mortgage, however, mortgage requirements have tightened up considerably. Unless you are a vet applying for a VA mortgage, 100% financing is gone. Stated income programs, programs where income was not verified, have gone the way of dollar a gallon gasoline. It might come back someday, but I would not count on it. Factors that lenders focus on include: income to debt ratios, stability of income, down payment, and credit scores. While these guidelines have been tightened up significantly people are still getting mortgages to purchase or refinance. FHA is the … (0 comments)
Is mortgage rate envy a sin? I have no idea, because I am a mortgage banker and not part of the clergy. But I do know that mortgage rate envy is usually based upon misinformation, and prevents mortgage borrowers from thinking clearly. They are so focused on rate that they do not see the whole picture. Focusing solely on the note rate can cause people to make imprudent financial decisions. The annual percentage rate (APR) is the number borrowers should be looking at. APR is defined as the total of all costs imposed on a borrower as a result of granting … (0 comments)
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