FHA, VA & Conventional Mortgages in Utah

FHA Fees to Rise on April Fool’s Day, Act Now and Save

Last Updated on Monday, 5 March 2012 01:57 Written by Casey Monday, 5 March 2012 01:55

Blogisode 215

If you are looking to refinance your current FHA loan or purchase a home using an FHA loan do so ASAP as their are changes coming to FHA loans starting on April 1st of 2012 that will make it so that the monthly payments are going to go up.

The biggest of these changes is that the Up Front Mortgage Insurance Premium or UFMIP amount is going to increase from 1% of the loan amount to 1.75% of the loan amount. This “fee” can be financed into the loan however acting now will save you money!

The next item that will be increased is the monthly mortgage insurance premium is going to increase by .100 percent. Currently on FHA loans with an LTV greater than 95% the monthly MI factor is 1.15 and loans less than 95% are at 1.1%.

If you have any questions on how this may or could affect a possible refinance or purchase please feel free to contact me and we can discuss it.

HARP 2.0….How May I Help You?

Last Updated on Friday, 2 March 2012 04:12 Written by Casey Friday, 2 March 2012 04:10

Blogisode 214

The best mortgage program so far aimed at helping millions of underwater homeowners is poised to take off within the next few weeks; however some key issues could thwart borrowers’ participation. One of them involves something most owners know nothing about: Who was your mortgage insurer on your underwater loan?

Though it was announced by the Obama administration the end of last year, the so called “HARP 2.0” – the second version of the making Home Affordable Refinance Program, or HARP program – will only hit full stride around the middle March, when Fannie Mae and Freddie Mac finish working on their automated underwriting systems to accept applications, and lenders and mortgage insurance companies start handling large volumes of requests.

The changes are crucial for homeowners who have mortgage balances greater than 125% of the current values of their home. Under HARP 2.0, there is no upper limit on permissible loan-to-value ratios, or LTVs. One could owe twice or even three times the value of your home and still qualify for a refinancing at today’s low interest rates. The earlier version imposed a limit of 125%, which cut out millions of victims of the real estate bubble burst.

HARP 2.0 also comes with streamlined underwriting – no requirement for physical appraisals in some cases, faster processing and lower fees imposed by Fannie Mae and Freddie Mac in recent years.

The objective is to get it right this time around by removing the previous obstacles to widespread participation by lenders and severely underwater borrowers. Industry studies estimate that as many as 6.9 million loans could fit the broad requirements for refinancing, but that somewhere around 2 million borrowers are likely to qualify on all the detailed eligibility criteria.

Among the key rules:

- Only loans owned or guaranteed by Fannie Mae and Freddie Mac are eligible. Underwater borrowers who have FHA, VA or other types of mortgages are not. The Low Price Lender can help you find out whether or not you are eligible for this program.

- Your mortgage must have been purchased or securitized by Fannie or Freddie by no later than May 31, 2009, and must have an LTV ratio in excess of 80 percent.

- You must be current on your loan with no 30-day late payments during the six months preceding application and no more than one late payment during the last 12 months.

If you think you qualify right now, contact me and I will help you proceed with this. Once the fully automated program has all the bugs worked out of it in a few weeks I should be able to shop your loan around to the best lender for your scenario.

Why Rent an Apartment When You Could Own a Home

Last Updated on Wednesday, 29 February 2012 03:35 Written by Casey Wednesday, 29 February 2012 03:35

Blogisode 213

A large percentage of people living in the United States pay hundreds if not thousands of dollars each month as rent for the apartment or house they’ve rented. It might seem like the sensible thing to do if you’re living from paycheck to paycheck with no substantial savings in the bank. This is because generally buying a house requires you to put some cash down initially. This is where a lot of prospective home buyers back down from the idea of home ownership. They just don’t have the cash for a down payment. They stick to being a renter rather than go for home ownership.
It is now possible to get a home putting minimum or no money down. Instead of paying hundreds or thousands each month to pay rent on an apartment or a house that is not even yours, you can use the same money to get yourself a decent home that you can actually own.
Living in Utah, there are several options available for a first time home buyer. To buy your first home you will need a loan from a lender. It would be advisable you consult a mortgage lender before making up your mind and signing a contract. A mortgage lender will help you in determining how much money you can afford to pay for a house and the total amount that it will cost you after everything has been included. This process is called pre-qualification and it should be your first step before actually going house hunting.
Listed below are some of the advantages of getting your own home, over renting an apartment or a house.
• Owning a home means the property is yours by law. You are free to do with it whatever you choose. Minor modifications in structure or a total change in layout; it’s up to you to decide and no one can challenge your right to do that.
• Renting a house does not qualify you for some of the major tax cuts that home owners are qualified for. Thus, owning a home will save you money in the long run.
• The monthly payments on your home may actually be less than the rent you were paying on your apartment.
• Owning a home does wonders for your credit rating and will help you with future purchases and transactions.
• A house is an asset and one that is yours to stay, no matter what.

There is no reason you shouldn’t opt for getting your very own house, whether you live in Utah or some place else in the United States. You can even get a reasonable quote on home insurance to safeguard your new home.