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Changes to FHA Mortgage Insurance effective October 4th

On September 2, 2010, in FHA Mortgages, by Todd Abelson | View Comments

As a result of new Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up-Front and the Annual Mortgage Insurance premiums. These changes as outlined in Mortgagee Letter 2010-28, are effective for all case numbers assigned on or after October 4th, 2010.

Here are the 6 things you need to know about these changes:

1. The Up Front premium is now 1.0 % for all standard FHA programs

2. The Annual premium is now .90% for LTVs GREATER than 95% on 30 year loans

3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30 year loans

4. The Annual premium is now .25% for LTVs GREATER than 90% on 15 year loans

5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15 year loans

6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%.

The result will be HIGHER monthly mortgage payments on new loans, although Borrowers will maintain a bit more equity. Just what we needed, right? HIGHER mortgage payments!!!

The question I ask myself now is – “why doesn’t every homeowner with an FHA loan that paid Up-Front Mortgage Insurance of 2.25% consider REFINANCING not only a lower rate, but to receive a full refund of the unused Up-Front MIP they paid?” Didn’t anyone in Washington think of the Negative effect this will have on the FHA coffers???

Call Todd Abelson & Tyler Ford at Sunstreet Mortgage in Tucson, AZ at (520) 331-LEND for all your mortgage needs!

Increase to FHA upfront mortgage insurance on April 5th!

On March 24, 2010, in FHA Mortgages, by Todd Abelson | View Comments

Important reminder on FHA upfront mortgage insurance premiums:

Homebuyers and Homeowners are reminded that effective on FHA loans for which the FHA case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money (now 1.75%) and refinance transactions (now 1.50%) including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.

For more detailed information on this premium increase, please see HUD/FHA Mortgagee Letter 2010-02 at: 

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-02ml.pdf

Please make every effort to get your contracts ratified or your refinance in process early in the week of March 29, 2010, since it is possible that FHA case numbers requested on Friday or Saturday may not be assigned prior to April 5, 2010, and therefore, be subject to the higher premium.

Call Todd Abelson and Tyler Ford at Sunstreet Mortgage for all your mortgage needs! (520)-331-LEND.

Extension of $8,000 Homebuyer tax credit?

On October 29, 2009, in Market News, Real Estate Information, Tyler Ford & Todd Abelson, by Todd Abelson | View Comments

The on-again, off-again extension of the $8,000 First time Homebuyer tax credit may be on again as both the House and Senate have passed versions of an extension. One version appears to extend it to Military personnel only, while another version offers it to everyone but has a declining credit each quarter over the next 12 months.

The next step is for a Conference committee to resolve the differences whereby a joint version will be voted on by both houses.

While I am hopeful an extension to the existing program will be voted on and passed, I am not holding my breath!

We at Sunstreet Mortgage, LLC in Tucson Arizona continue to close loans on-time to meet our customer’s needs.

Call Todd Abelson & Tyler Ford of visit our website at www.TucsonMortgages.com

Can You Guess What Percentage Of Mortgages Are Still Paid On-Time?

On March 3, 2009, in Mortgage Educational Information, by admin | View Comments

Mortgages 60 days past due, as reported by TransUnionMortgage delinquencies are on the rise nationwide, but the news may not be as bad as it appears at first glance.

Using anonymous data from its national credit database, TransUnion reports that 4.58 percent of American homeowners were at least 60 days past due on mortgage payments last quarter.

Comparing the statistic to the data from a year ago, the credit reporting agency goes on to say that mortgage delinquencies are up 53 percent.

Although fair, the comparison carries a distinct, negative connotation because if we flip the data to its positive, the statistics don’t seem nearly as menacing.

Consider: In the last quarter of 2008, 4.58 percent of homeowners were delinquent on their respective mortgages.  The positive sign, therefore, is that 95.42 percent of homeowners were not delinquent on their home loans.

Furthermore, in looking at TransUnion’s data for the 5 largest states in the Union, it’s clear that the national delinquency rate is being skewed by California and Florida.  New York and Texas, for example, exhibit delinquency rates below the national 4.58 percent marker.

North Dakota’s delinquency rate hovers near 1 percent.

Headlines are designed to attract eyeballs and nothing else. To get the complete story, therefore — the real story — it never hurts to dig a little deeper into the facts.

(Image courtesy: TransUnion) brought to you by Tyler Ford and Todd Abelson – Tucson Mortgages

You’ll Get The Best Mortgage Rates If You Watch Certain Patterns

On December 18, 2008, in Interest Rates, by admin | View Comments

The FOMC spurred inflation concerns at its December 15-16, 2008 meeting.When it comes to mortgage rates, sometimes it’s better to “act now”.

On Tuesday, mortgage rates fell to their lowest levels in 4 years. It happened because the Fed said it would “employ all available tools” to resuscitate the economy.

On Wednesday, however, the markets had second thoughts.

After considering the long-term implications of a near-zero percent Fed Funds Rate and the cumulative cost of government intervention to-date, suddenly, traders grew fearful that U.S. government action would devalue the dollar and lead to inflation — the enemy of low mortgage rates.

As a result, mortgage markets unwound.

At first, the exit was a slow and orderly. Then, without warning, investors began a full-on sprint for the exits. By the end of the day, mortgage rates were higher by as much as a half-percent. Nearly all of Tuesday’s big gains were erased.

In hindsight, the reversal Wednesday wasn’t all that surprising — it’s the same trading pattern we’ve seen twice already this year. The first time was after the Fed’s “surprise” rate cut” in January, and the second time was after the federal takeover of Fannie Mae and Freddie Mac in September.

Sharp rate drops tend to be followed by immediate bounce-backs, it seems.

But, unfortunately, not every would-be refinancing homeowner saw the increase coming. While those that locked at the first opportunity to save money are sitting pretty today, the rest that “waited for rates to go lower” are likely kicking themselves about it.

Going forward, mortgage rates may fall, or they may not. We can’t possibly know. But we’ve now seen the pattern 3 times now — when mortgage rates plunge like they did Tuesday, they rarely stay that low for long. When you find a rate you like, get in and get locked as soon as possible.

Sleeping on it for even one night may end up costing you dearly. Give Tyler Ford and Todd Abelson of Sunstreet Mortgage a call to see if refinancing makes since for you. We are Tucson’s top mortgage lending team and will put your best interests first!

(Image courtesy: The New York Times)

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  • Gail Cornell: Hi Todd, I am sorry to hear about your friend that passed away last week in your office. Thank you for...
  • Tyler Ford: Wow. It is amazing how the FHA program has changed over the last 10 years.
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