Changes to Guidelines on Adjustable Rate Mortgages (ARMs)
Adjustable Rate Mortgages (ARMs) have been extremely competitive in rate; often, a 5/1 ARM is a good 1.0%-1.25% below the 30 Year Fixed Rate mortgage. There are advantages and disadvantages to every loan, and as long as you fully understand the loan program you’re...General Market Update
I can’t believe nearly a month has gone by since my last post! What a whirlwind… I last wrote about how low rates were, and have been busy getting people locked in and closed during this time period. For a while, rates maintained their low levels, and then...Rates Are Hot!
Rates have been on fire. Here’s a snapshot, based on today’s rates (5.18.10) after an afternoon price improvement: CONFORMING LOAN AMOUNT (up to $417k in loan amount): Assumes: Single Family Residence, Owner-Occupied home, 20% or more equity, 740+ FICO, no...Freddie Mac Loan + Condo + California = The Homeowners Association Better Have Earthquake Insurance
If you are buying or refinancing a condominium unit in California and your loan is being backed by Freddie Mac, the development must have earthquake insurance or else you will pay a premium. Apparently, this Freddie Mac rule has been around since 1996. I have been...Changes to Mortgage Insurance Rules: This Time, For the Better!
In March 2009, I blogged an update that Mortgage Insurance qualifying rules were tightening and that the maximum Debt-to-Income ratio (DTI) was decreasing from 55% to 41%. Then in June 2009, the minimum credit score requirement changed from 700 to 720. The credit...Are You Aware of the First Time Homebuyer Tax Credits?
There is a small window of opportunity for first time homebuyers to get a combination federal and state tax credits of up to $18,000 (state tax credit is for California). Please make sure those in your life know about this! Federal Tax Credit Rules: (up to $8000 tax...Earthquake Preparedness Tips: Blog Contributed by Kathy Sturr of Inside-Out Designs
I was in San Diego this past weekend visiting family when the 7.2 earthquake hit in Mexicali, which is ~130 miles from where I was. It was definitely one of the bigger ones I’ve been through and lasted a long time. For all of us, going through that is a reminder...FHA’s Upfront Insurance Premium Increasing on Monday, 4/5/10
For FHA loans assigned on or after April 5, 2010, the upfront mortgage insurance premium (UFMIP) is increasing from 1.75% to 2.25%. If you’re on the fence about refinancing into an FHA loan, or are currently still working on negotiations for a purchase, there...Things to Consider If You’re Thinking of Refinancing
I just got a phone call yesterday from a 45 year old single mom of three. She heard that rates have gone down and she was excited about potentially refinancing. She has had her current loan (a 15 Year Fixed) since 2003. In 7 more years, her mortgage will be...Loan Calculator
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