As the chart shows, for every $100K financed, every 1% change in interest rate costs over $22,000 over 30 years. Every .250% costs a little over $6,000.

Make sure you aren’t spending more than you need to on your mortgage! If your current rate is 5.000% or higher, give me a call to see how much you could be saving! 425-319-7734.

 That depends on what type of mortgage you have. Do

 you have a conventional loan or an FHA loan?

Dropping Conventional Mortgage Insurance Rules

 Automatic Termination

• Fixed Rate & Adjustable – Removed when reduced to 78% LTV
• LTV based upon ORIGINAL VALUE
• Based SOLEY on regular amortization (not prepayment of principal) 

                     Additional Requirement:

                    Mortgage payment must be current

Borrower Requests Termination

• Fixed & Adjustable – Removed when reduced to 78% LTV

                     Additional Requirements: 

                    Submit cancellation request in writing

                    Good payment history

                    Current on mortgage payments

                    Appraisal or Certification that property value has not decreased BELOW the original value

                   No 2^nd liens or subordinated loans on property

Dropping FHA Mortgage Insurance Premium Rules

Loans closed PRIOR to January 1, 2001 are NOT eligible for termination of MIP (monthly insurance premium) if closed on January 1, 2001 and after, MIP will be automatically terminated under the following conditions. 

• More than 15-year term
  • Must pay for 5 years AND
  • 78% LTV based on original LTV
•  15-Year Term or less
• • If original loan amount is 90.01% or more, of the original appraisal value, MIP will be terminated at 78%
  • 5-year minimum payment waived
  • If original loan amount is 90% or less, of the original appraisal value, NO monthly MIP will be charged.

 NOTE:

Loan-to-Value for purchases based on the sales price or appraisal value, whichever is lower

Loan-to-Value for refinances based on appraisal value

Loan-to-value figured on base loan amount WITHOUT UFMIP (up front mortgage ins. premium)

http://financiallyfit.yahoo.com/finance/article-110858-6830-2-tips-on-buying-a-home-at-a-100000-discount?ywaad=ad0035 

For info on how to buy a Fannie Mae owned home, email me at djcaple@comcast.net.

Fannie Mae’s special financing benefits include:

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance*
• No appraisal fees

Fannie Mae is also offering buyers up to 3.5% in closing cost assistance that can be used towards closing costs and/or buying down the interest rate for properties that close before December 31, 2010.

Here is an example of a Fannie Mae owned home, available right now in South Everett. This home sold for $522,000 in August 2007 and is currently for sale by Fannie Mae for $344,900.

http://www.homepath.com/listingdetails.html?openHouse=&src_ref=&openhouse=&cno=061&pi=&mlsid=&bhi=&z=98208&y=14&x=33&pa=&st=WA&bdi=&ci=&listingid=22380718

Even though interest rates haven’t been this low since President Eisenhower was in office, many people still can’t qualify for a mortgage.

Approximately one-third of Americans are unlikely to qualify for a mortgage because their credit scores are too low, an analysis of 25,000 loan quotes during the first half of September on Zillow Mortgage Marketplace found. The lead generation website found that those consumers with a credit score under 620 who entered data on the site were unlikely to have even one quote returned, even if they were willing to make a down payment in the 15% to 25% range.

Zillow cited statistics from MyFICO.com that found over 29% of Americans have a score under 620.  Zillow chief economist Stan Humphries said homes are more affordable than in years, plus mortgage interest rates are at record lows. “But the irony here is that so many Americans can’t qualify for these low rates, or can’t qualify for a mortgage at all.”    …National Mortgage News

If you need help rebuilding your credit after having some credit issues, don’t give up. There is hope. Email me at djcaple@comcast.net .

How long do you have to wait before you can qualify for a new mortgage after you’ve had a foreclosure, a bankruptcy, or a short sale? The answer is – it depends on what type of mortgage you’re going to get. Fannie Mae, Freddie Mac, and FHA/VA all have different criteria for the length of time they require before approving you for a new mortgage.

FHA is changing the amount it charges for mortgage insurance. If you currently have an FHA mortgage and are considering refinancing, or if you are going to be purchasing a home with an FHA mortgage soon, you’re going to want to get your FHA case number before October 4th.

A case number doesn’t have anything to do with when you actually apply for a loan or when it will close, but every FHA loan has a case number assigned to it. Numbers before October 4th will have the mortgage insurance calculated at the old rate and numbers given out after October 4th will be calculated at the new rate.

The difference this change will make in payments is approximately $22-$25 per $100K. If you live in Washington state and are in need of financing for your home, please give me a call at 425-319-7734 and I would be happy to help.

Obama’s Home Affordable Refinance Program has been extended to June 30th, 2011. You still have time to take advantage of refinancing into a low, fixed rate.

Do you owe more on your mortgage than your home is worth? The good news is that if your current mortgage is owned by Fannie Mae or Freddie Mac (if you don’t know, call me- I can find out for you) there is still time to refinance into a low 30 year fixed rate. 

You are eligible to refinance if:

• You are the owner-occupant of a 1-4 unit home
• Your mortgage is guaranteed by Fannie Mae or Freddie Mac (call me)
• You are current on your mortgage payments and haven’t been more than 30 days late in the last 12 months
• The amount you owe on your 1st mortgage doesn’t exceed 125% of the current value
• You have a reasonable ability to pay the new mortgage payments

Call me today at 425-319-7734 to see if this program will benefit you.

Late last year, Fannie Mae conducted a national housing survey to check in on attitudes toward housing, especially in light of the current housing downturn. The research project asked more than 3,000 homeowners and renters nationwide, how confident they are about homeownership as an investment, the mortgage process, the housing finance system, their personal finances and the overall economy.

Survey Results

The survey showed that, despite the downturn, Americans continue to value homeownership.

• Nearly two-thirds of respondents said they preferred owning a home to renting (safety and having a positive environment to raise children were the top reasons to own).
• More than 60 percent said they would buy a house if they were going to move.
• Seven out of ten said that buying a home continues to be one of the safest investments available (only 17 percent believe buying stocks is a safe investment).
• Three-quarters of renters believe that owning makes more sense than renting, because it protects them against rent increases and is a good investment over the long term.

At the same time, people are more cautious and recognize the challenges to homeownership.

• About 60 percent said it would be harder to get a mortgage than it was for their parents, (citing poor credit and income as the main obstacles).
• Nearly seven in ten (68 percent) think it will be harder for their children to buy a home.
• Nearly one-quarter of renters say they will wait longer than they had planned to buy a home.
• More than half said they are making personal sacrifices to own their home, with 24 percent saying they are “sacrificing a great deal.”

In addition, a majority of Americans believe in upholding the financial responsibilities of homeownership.

• Nearly nine in ten said they do not believe it is acceptable to stop making mortgage payments on an underwater mortgage.
• Only six percent of homeowners said they had considered stopping their mortgage payments.
• More than half (53 percent) believe homeowners bear the responsibility if they get a home loan they can’t afford.

What We’ve Learned

What we’ve learned from these and other survey results is that even in light of the housing crisis Americans still value homeownership. But they have made a shift to a “new reality” — one that is less willing to take on risk to own a home and more focused on making homeownership a success for the long-term. 

Click here to see the survey.

Did you know that Cinco de Mayo is actually an American celebration and not a Mexican one?

Contrary to popular belief, it’s not Mexican Independence Day, which is commemorated Sept. 16.  It actually celebrates the 1862 Mexican victory over the French in the Battle of Puebla and, according to many people, is more of a U.S. holiday than a Mexican one.

For the average Mexican, today is just another Wednesday, according to Oscar Casares, a professor at the University of Texas-Austin. “The holiday, which has never really been much of one in Mexico, crossed over to this side of the border in the 1950s and 1960s, as civil rights activists were attempting to build harmony between the two countries and cultures.  The date gained more attention in the 1980s when marketers, particularly beer companies, saw this as a perfect opportunity to capitalize on the celebratory nature of the holiday.”

Eric Lurio wrote in the Huffington Post, “It’s actually a Mexican-American holiday, which was for some reason very popular in California, and over the years has become the official Mexican ethnic day, as Columbus Day is for the Italians … In other words, it’s a harmless, if totally fake holiday.”

Oh well, Happy Cinco de Mayo anyway!