In this age of rapid fire technology, no one can afford to get left behind. Luckily, I work with Windermere and they are on the ball. We now have an app that makes house hunting quick, fun, and super easy while you're on the road!
I'm really happy to be able to offer my Windermere Real Estate app to you!
Whether you’re searching for a house or want to see what homes are selling for in your neighborhood, my app brings that and more information to the palm of your hand anytime, anywhere….and it's free!
How it works:
Download my app today and try it out. Text B37 to 87778 to get my free real estate app.
If you need help with downloading, just give me a yell. And don't hesitate to let me know how you like it (or not). Happy house hunting!
Personally, I never thought to see an opportunity like this in my lifetime. I’ve been of a mind to believe that I will always pay more for everything than my parents did …
Happily, one of our local lenders just sent over these mortgage rate / rental comparison / home payment charts.
They made my day. I hope they make yours, too. 🙂
(FHLMC = Federal Home Loan Mortgage Corporation)
So is the upward trend continuing? Yep.
Sometimes it’s difficult to acknowledge, but repairs and improvements – even little ones – go a long way. Here’s an article that shares the six most common and easy ways to increase value: http://home-edition.net/Default.aspx?ArticleID=85&d=53HKV68aF6aZC04g5rRZzg%3D%3D
Unfortunately the mortgage market continues to get harder and more expensive. Below is an explanation of the moves HUD is making on FHA insured loans starting in April. The impact isn’t huge, but it’s a negative impact none – the – less and will make purchasing a home using FHA financing more expensive. Stay informed and on top of the changes:
HUD Increases Costs – Effective April
In a move to increase their financial standing (and to get the FHA back into required capital requirements), on Monday, HUD announced their anticipated increases in the premiums they charge borrowers. Simply stated, the cost of borrowing is going up.
FHA loans, by design, are more liberal in their underwriting guidelines than most conventional loan products (in terms of credit, income ratios, required investment from the borrower, and maximum loan amount). HUD is not a lender. Rather, it is a federally-insured insurance company. They insure lenders against default on loans underwritten in compliance with their published guidelines. It is because of this insurance that lenders approve and close loans with more liberal guidelines.
As an insurance company, HUD charges two types of premiums on the FHA mortgages:
The UFMIP (Up Front Mortgage Insurance Premium) will be raised effective April 1, 2012 from its current 1% to 1.75%. One advantage to the UFMIP is the fact that it is typically built into the loan amount and does not require additional cash outlay at closing. However, the increase in loan amount does impact monthly payment and cash flow.
The MMIP (Monthly Mortgage Insurance Premium) will be raised 10 basis points on April 1, 2012 to cover the requirements of the payroll tax extension approved last year. This is a direct increase of 10 basis points in the borrower’s mortgage payment, and has the effect of a 10 basis point increase in interest rates. As a kicker, loans over $625,000 will be bumped 35 basis points from today’s levels effective June 1, 2012. This bump is substantial, as you can see in the chart below.
For a larger version, follow this link: HUD Costs Chart.
On a loan amount of $300,000, we are seeing an increased payment of $36.41, which doesn’t sound too bad. However, we know that home buyers buy homes comparing what their monthly payment will be after they close. This hike in payment is equivalent to borrowing an additional $7000. Starting next month, it’s as if the home became $7000 more expensive. What is the result? Buyers are going to have to pay more OR they’re going to have to offer less to the seller (to maintain the same mortgage payment they were comfortable with today). A $7000 lower offer is like another 2.5% decline of home prices. Not good for anyone.
Sellers, price correctly and get into contract in March.
Buyers, today is the cheapest mortgage you are likely to see in your lifetime (all things considered)! Get off the fence and buy NOW!
P.S. – Rumors are strong that FHA is looking to reduce the allowable sellers’ concession from 6% to 3% in April as well. This move will have a huge impact on how much cash will be needed to buy (especially in places like NY with the NYS Mortgage Tax). Hurry—get in the game!
Mountain West Bank
NMLS # 337416
|Two Things You May Have Missed
Before the end of the year, Congress and the President agreed to extend the payroll tax cut. In that bill, there were two items of interest for those involved in real estate.
1.) The hike in the Guarantee Fees charged by the GSEs Fannie Mae and Freddie Mac.
The 10 basis point increase in the fees has translated to a .375% to .5% increase in mortgage rates for conventional loans. Many customers who started their loans a couple of months ago are being “surprised” with higher than expected rates. Heck, everything you read in the papers says rates are at historic lows and will likely stay there through 2014. Many consumers feel as if their lender is being unscrupulous. However, your lender has fallen victim to the increase in Guarantee Fees and how the secondary market is passing on the cost. What looks like possible lender greed is just a passing on of the increased expense imposed by the government. Sadly, the increased revenue isn’t even being used to help aid an ailing Fannie Mae or Freddie Mac. It is being turned over to the US Treasury to cover the temporary extension of the payroll tax cut.
2.) Permission for HUD to increase the insurance premiums they charge on FHA loans.
If you remember, HUD charges two insurance premiums – a monthly one and an up-front one that is usually added into the loan. Most recently, they reduced the up-front mortgage insurance premium (UFMIP) and dramatically raised the monthly fee (MMIP). It is widely anticipated that, maybe as soon as April, we will see a hike in the UFMIP with no adjustment to the MMIP. While this will help shore up the reserves in the insurance fund, it will simultaneously make buying a home more expensive. No one knows the effective date or amount of the increase. Buyers should look to buy before the increase in fees.
We always hear how our government officials tuck away things in their bills. In this case, while the headlines during the holidays praised Washington for preserving the payroll tax cut, they may have hurt us more in the long run.