Here is a simple way to read a mortgage backed security chart aka MBS
Here is a simple way to read a mortgage backed security chart aka MBS
May 24, 2013 by Nevin Williams · Leave a Comment
Shopping Mortgage Rates in San Diego – A simple way to read a mortgage backed security chart (MBS)
Here is a simple way to read a mortgage backed security chart aka MBS
April 3, 2013 by Nevin Williams · Leave a Comment
FHA to raise their mortgage insurance and add more expensive terms
FHA has just announced their upcoming changes to FHA mortgage insurance and boy o boy did it just get expensive. Less people will qualify under the new FHA premiums.
Current FHA loans
I am only going to focus on loan amounts under 625,500 since most loans fall under this category. If you want specific info on higher loan amounts pick up the phone and call me. (888) 206-5781 x 1017.
Click here to understand how to use this chart to calculate FHA mortgage insurance.
Besides the monthly premium increasing here is the kicker: It used to be that after 5 years if you had 22% equity in your home you could remove your MI. If you financed 78% you would not have to pay MI. 15 year loans are exempt from MI.
Under the new rules if you borrow 90% or less you must pay monthly MI regardless of equity for a minimum of 11 years.
If you borrow more than 90% on a 30 year loan you must pay MI for the entire 30 year term.
15 year loans used to be exempt from MI, now they will carry this MI for a minimum of 11 years.
This does not include Streamline refinances.
This will undoubtedly push many home buyers out of the market who dont qualify for the higher monthly payments.
FHA MI – FHA mortgage insurance -FHA PMI
February 4, 2013 by Nevin Williams · Leave a Comment
FHA mortgage insurance – how to calculate
How to calculate mortgage insurance (MI) on FHA loans to figure out a monthly MI payment.
What exactly is PMI or MI? You can view PMI a simple explanation for more clarification.
What you will need:
A standard calculator
A piece of paper/pen
A little patience
An understanding of MI factor
An understanding of UFMIP
Here is the formula -
Loan amount multiplied by to monthly MI factor divided by 12 equals your monthly MI payment.
MI factor is the number used to calculate the sum. FHA rules change but as of now these are the guidelines.
If you have a down payment less than 5% then your monthly MI factor is 1.25% (This figure changes frequently. Check HUD 4155 for updates or contact me for most recent MI factor). If you have 5% or greater down payment your monthly MI factor is 1.20%
UFMIP is a one time payment to FHA. It stands for Up Front Mortgage Insurance Premium. Easy way to think of it is similar to buying or leasing a car. You put a down payment and then have monthly payments. UFMIP is equal to 1% of the loan amount.
Hypothetical scenario:
Purchase price $300,000 – 3.5% down payment ($10,500) = $289,500 loan amount
Base loan amount – $289,500 X 1.25% = 3,618.75. Divide by 12 = $301.56
The monthly FHA MI payment in this scenario would be $301.56 per month.
If the down payment is 5% or greater then use 1.20% instead of 1.25%
Your loan amount will be different. This is because in addition to the monthly MI payment FHA also charges a one time Up Front Mortgage Insurance Premium (UFMIP abbreviated) of 1.75%.
Apply UFMIP – Loan amount $289,500 X 1.75 (5,066.25) = $294,566. This is your new total loan amount.
FHA mortgage insurance – FHA PMI- FHA MI explained
February 4, 2013 by Nevin Williams · Leave a Comment
If you are buying or refinancing a home between January and April 15th please read this.
If you are buying or refinancing a home between January and April 15th please read this. This will affect you and your transaction. There is a potential problem with loan financing that will cause your closing to get delayed. This is due to one little but important form that creates a lot of closing problems.
That form is the IRS 4506T (see below)
Lenders are required by Fannie Mae and Freddie Mac to request a copy of an applicants tax return transcripts before the loan closes. The transcript is compared to the tax returns in the loan file to ensure they match. Reasons they may not match would be a buyer amended returns but provided the original returns to the loan officer. The other reason would be an attempt to perpetrate mortgage fraud.
Many believe that their transcripts are available after they have filed and received their tax refunds. Nothing could be farther from the truth. The IRS can take up to 8 weeks to upload the filed tax return into their system to be able to generate the transcripts. Doesn’t mean it will take 8 weeks but it could.
Make sure you loan officer have this conversation with your loan officer. Preventative measures will ensure a timely closing.
If your loan officer is not knowledgeable in this requirement or you are looking for a loan officer feel free to contact me by email or phone to discuss. 919-863-4370
January 18, 2013 by Nevin Williams · Leave a Comment
Current Mortgage Rate Trends 12-19-2012
Mortgage rates have been increasing slightly. Today they were relatively flat. With the looming fiscal cliff and Europe’s financial crisis I believe rates may improve in the near future. Contact me for a rate quote or to discuss mortgage related questions.
December 19, 2012 by Nevin Williams · Leave a Comment
Why your home isn’t worth what you think it is
If you have found yourself upside down on your home don’t despair. We might have a solution for you. Understand how and why your property value may not be what you think it is in this quick informative video. Contact us for more information. Please subscribe or forward this on to anyone you know who might benefit from this type of information. Thanks!
How to Shop Mortgage Rates
View this in 1080 HD by clicking next to “CC” at bottom
April 6, 2012 by Nevin Williams · Leave a Comment
PMI, MI, MIP: what is the difference?
Did you know MI is required even with a 20% down payment on some loans? MI, PMI are both known as mortgage insurance but do have differences. Find out why in this video.
March 13, 2012 by Nevin Williams · Leave a Comment
Home loans delayed due to the IRS
If you are buying or refinancing your home during tax time you need to watch this video. Your loan could be delayed by missing this one important step that will hold up your loan compliments of the IRS.
San Diego Mortgages – San Diego Home Loans
February 28, 2012 by Nevin Williams · Leave a Comment
