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Homestead Exemption Reminder

Monday, January 31st, 2011

If you have not done so please take a contracts class. I attended one of Howell Haunsen’s at MSAR earlier in the month and it was excellent. The new contracts are improved – especially with regard to the addendum’s for FHA/VA/Conventional. It greatly simplifies the need to use other addendum’s as it now covers the loan and appraisal concerns. Hope to see more of these soon. Please pay attention to timelines. I am still seeing 5 day due diligence timelines as well as 2 week financing contingencies. This in my opinion is still unrealistic. If I am looking at this wrong please let me know (buyer’s agents only)

To assist with the needs to communicate this we are going to now update all parties on appraisal/title order and received dates.

Lastly, just wanted to thank those we worked with last year and let you know what we are doing for you and our clients. Below is a sneak peak of a partial copy of the email that is going out to the clients closed in 2010 – reminding them to file for homestead exemption before April 1. If you were the referral source we now included you in the message – just look below. The message will be sent out on Monday!

This is a great time for you to reach out to others if you hadn’t already done so!

FHA MIP to Change Moved back to October

Thursday, August 19th, 2010

A bit of good news the proposed changes below are going to go into effect on Oct 4, 2010. 

please click here for HUD letter

Congress has passed H.R. 5981 which gives FHA the authority to increase monthly premiums. It appears to become effective for case numbers issued after September 7, 2010. At the same time UFMIP will be reduced to 1.00%. The changes will be as follows:

UFMIP: 1.00%

Monthly Mortgage Insurance for LTV’s < 95% = .85

Monthly Mortgage Insurance for LTV’s > 95% = .90

The current Monthly Mortgage insurance rate is at .55

Example:

Sales Price $150,000 Today 9/7/2010 Difference
Base Loan $144,750 $144,750  $144,750  
Upfront Mip   2.25%  1% 1.25%
    $3,256.87 $1,447.50 $1,809.37
Total Loan   $148,007 $146,198  
P&I @ 5% 30 Fixed   $794.53 $784.82 $9.71
MonthlyMI    0.55% 0.90% 0.45%
    $67.83 $115.74 $47.91
         
Total Payment    $862.36 $900.56 $38.20

Some people are advertising this as a benefit to the buyer with the lower upfront MIP.  I am not seeing the overall benefit based on the economics.  The benefit long term is that this will help FHA shore up its reserve account in the market we are in to ensure financial stability – I get that.  At the end of the day - Yes it will cost the buyer more money – but this is not the worst thing and puts numbers more in line with conventional mortgage insurance.  Roughly for every $100,000 financed the cost will be about $25 per.   

Summary – If your working with a buyer now use this to create a sense of urgency and please remember it is only a 3.5% down payment.

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End of First Quarter 2010

Thursday, April 1st, 2010

End of the month is real estate is always interesting plus throw in the tax credit rush and should be even more excitement. Have a great end of the month.

1. USDA Loans

Funding Information as of: April 26, 2010 USDA Guaranteed Rural Housing

Total of $1,149,457.147 funds available for Home Purchase on USDA loans

There are two Bills (HR 5017 and HR 5003) that are scheduled to be presented to the House and if voted and passed will allocate an additional 26B in funding for the program. Will Keep you up to date!

2. FHA Updates

Having success with our FHA 203ks loan program. The date on the 203ks class is May 7th @ 11am. Spots will be limited 3 spots left if you have not registered.

MORTGAGE RATES

Loan Programs

Interest Rates*

30 Year
Conv.

Low 5′s

30 Year
FHA/VA

Low 5′s

Rural
Development

Mid 5′s

5/1 Arm
Conv.

Low 4′s

7/1 Arm
Jumbo

Low 4′s

Please contact us for specific situations and specific rates.

*Risk Based Pricing will affect rate offered.

UNDERWRITING TIMES

Loan Programs

Underwting time

Conv

1 Days

FHA
& VA

4 Days

203K

4 Days

Rural
Housing

7 Days

DCA

4 Days


MORTGAGE RATE TRENDS


DAILY RATE LOCK ADVISORY

For an in depth explanation The Daily Rate Lock Advisory.

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