U.S. Governments April Fool's Joke

By the time you read this, the U.S. Governments April Fool's joke will have taken effect.  That is the increase of the FHA MIP.  But never fear, they have the next thing all set to take effect in early June.  At that time a loan case number pulled after June 3 will carry with it the privilege of paying the MIP for the life of the loan.  Presently if you reach the  point of 78% of the appraised value or purchase price (whichever is less) the MIP Will drop off.  (with a minimum of 5 years).  So if you are in the market for a home , and need to use an FHA loan, it would behoove you to go ahead and get it done.  Call or email me for details on how to avoid FHA.

FHA MIP

I mentioned a couple of weeks ago that FHA is raising the mortgage insurance April 1 by 10 basis points. That doesn't sound like much, but it adds up. It is their April Fool's Joke. At the present in most cases when you get 22% equity based on your purchase price it drops off your payment. On June 3 all the new loans will see the MIP become permanent for the life of the loan. So If you can move your time table forward a little, it could save you a lot of money. Call me at (615) 777-4663 to help you with this.

Mortgage Insurance

This week's topic is so important, but it makes some people's eyes glaze over. It is Mortgage Insurance. It is rare that a loan is made (that does not show 20% equity or down payment) and you don't see mortgage insurance. It is probably the most important thing to talk to me about when you call about a mortgage. It may be more significant than the interest rate. With all the defaults in the housing industry we have seen huge changes in MIP, PMI, Funding Fees, Guarantee fees etc. The only plus is PMI (which is the conventional loan version) is showing signs that are positive. For it you need 5% of your own money or equity and 720 plus credit scores. If you have that I can show you how to save money. But if you don't, it isn't worth waiting . You might miss these great interest rates.



Call me at 615-777-4663 or email me at george.margrave@migonline.com to discuss your options.

New FHA Streamline Loans...worth the wait!

FHA has finally done something good. There are lots of folks that bought their homes in the 2000 to May 31, 2009 timeframe that have not been candidates for refinancing. The reasons are usually one of these.


1 The new FHA MIPs made the numbers much worse than they should have been.

2. They owed more than their home was worth

FHA addressed this by announcing that for any person who has an existing FHA loan that was endorsed before May 31, 2009, the streamline FHA MIP will be .55 monthly and .01 up front. This is much lower than people buying a new home today with current MIPS.

So the numbers are going to be drastically better. The catch is that if you want to add closing cost to the loan , the home has to appraise for enough to do that. But if it won’t, then we can build the cost into the rate and do lender paid closing cost with no appraisal.

It is a win win for everybody.

Basically the only qualifying factor is that you have income, a minimum 640 credit score and no mortgage payments over 30 days late in the last 12 months.

Give me a call, 615-777-4663, shoot me an email george.margrave@migonline.com or refer someone you know looking to refinance. Look at the numbers. It will be worth it.