Know Your Home Loan » Mortgage News http://www.knowyourhomeloan.com Your local resource for Home Loans Tue, 07 Sep 2010 20:39:10 +0000 en hourly 1 http://wordpress.org/?v=3.0 100% LTV Conventional Financing Now Available http://www.knowyourhomeloan.com/100-ltv-conventional-financing-now-available/ http://www.knowyourhomeloan.com/100-ltv-conventional-financing-now-available/#comments Fri, 03 Sep 2010 00:33:27 +0000 admin http://www.knowyourhomeloan.com/?p=829 Yes! You read that correctly! You can now finance the entire purchase price of the property on a conventional loan! Read carefully, because this loan program could be perfect for your situation!

Affordable Advantage program is being offered through Minnesota Housing and Finance Angency (MHFA).

Here is a brief overview of the program:

  • 100% financing with competitive rates available to qualified borrowers
  • NO MORTGAGE INSURANCE REQUIRED!! (Yes, I am shouting this! This can make a HUGE difference in your monthly payments!!!)
  • Up to 3% of the purchase price allowed in seller-paid closing costs for the buyer.
  • May not be combined with any other down payment assistance programs

I know I haven’t told you yet if you can qualify for the Affordable Advantage program through Minnesota Housing yet, so lets cover a few of the main points right now:

  • First Time Home Buyer (meaning you cannot have owned a home in the previous 3 years)
  • Must have a minimum credit score of 680
  • Debt-to-income ratio must be no more than 45%
  • Contribute at least $1,000 out of your own funds (this can be earnerst money, closing costs, etc)
  • You must not earn more than $83,900 in annual income (this is total household income for families/households with 4 or less people)
  • Complete the pre-purchase home buyer education course

In numerous situations, this 100% financing program, Affordable Advantage, will actually have a lower payment than a FHA loan with 3.5% down. This is because of the mortgage insurance costs that are tacked on top of your payment. There is no mortgage insurance to be paid with the Affordable Advantage program.

To get started and see if you qualify for this program, fill out the online prequalification form here.

[contact-form] ]]> http://www.knowyourhomeloan.com/100-ltv-conventional-financing-now-available/feed/ 0 Interest Rates at 3.75%!!!!!! http://www.knowyourhomeloan.com/interest-rates-at-3-75/ http://www.knowyourhomeloan.com/interest-rates-at-3-75/#comments Thu, 02 Sep 2010 18:54:17 +0000 admin http://www.knowyourhomeloan.com/?p=824 Yesterday we were pleased to hear the good news!  Minnesota Housing lowered all first-time home buyer program interest rates, with the lowest rates currently under the Minnesota Mortgage Program (MMP) at 3.750% for government loans and 4.125% for conventional loans (conventional rate includes all pricing adjustments).

In addition, for clients who are ready to buy and interested in 100% LTV financing, consider using the new Affordable Advantage product, now at 4.500%.

If you are looking at buying a home, call us as we can offer you safe loans with below-market interest rates today.

Please note, these rates are subject to change at any time, and this is not an offer to enter into an interest rate agreement. Such an agreement may only be made pursuant to Minnesota Statutes Section 47.206, Subds. 3 and 4.

[contact-form] ]]> http://www.knowyourhomeloan.com/interest-rates-at-3-75/feed/ 0 FHA “Underwater” Refinance http://www.knowyourhomeloan.com/fha-underwater-refinance/ http://www.knowyourhomeloan.com/fha-underwater-refinance/#comments Thu, 02 Sep 2010 02:31:39 +0000 admin http://www.knowyourhomeloan.com/?p=819 Many homeowners we speak with want to refinance their homes to get a better interest rate. Unfortunately, many of them owe more on their current mortgages than the home is valued at.

The message below about refinancing homes that are “upside down” or “underwater” and a new program that MAY end up helping a few of the responsible homeowners who have been limited in their ability to refinance due to declining market value of their homes.

Courtesy of Donnell Bowen, Regional Operations Manager, Cornerstone Mortgage Company:

“I wanted to put a word out about the refi  program that is set to release on September 7th.  This is another enhancement to the Making Home Affordable  (MHA) Program .  I consulted with our Corporate Underwriting Team this morning about it.  NOT ONE investor has issued any directive regarding the program yet but we are waiting with bated breath!

Here is a link to the mortgagee letter detailing the Eligibility Requirements:  http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf

Here are the highlights:

·         The home must be underwater

·         The borrower must be current on payments

·         The borrower must not be in a temporary or trial modification period

·         The existing mortgage lender must discount their mortgage by at least 10%

·         This is OPTIONAL for the existing mortgage lender

·         The total loan-to-value ration (LTV) must not exceed 97.75% after refinance

·         If there is a 2nd mortgage, that lender must agree to forfeit their loan and take a $500 incentive

Or

·         If there is a 2nd mortgage that gets Subordinated, the total combined loan-to-value ratios (CLTV) cannot exceed 115% of the value

·         If a borrower completes one of these refinances it will be reported to the credit bureaus in the same way that a short sale would

Given these requirements I don’t expect to see investors clamoring to offer this product…but then again I see new things on a hourly basis these days! Please stay tuned and the Operations Department here at Cornerstone will keep you updated with the latest developments.”

Time will tell whether or not this program will end up being accepted by the current secondary market investors (which is the only way the loan product can hit the streets and be offered to the public) or whether it will flatline before launch.

If you think you would qualify for this FHA “Underwater” refinance, contact Carrie or fill out the online prequalification worksheet to be ready for this loan product to become available.

]]> http://www.knowyourhomeloan.com/fha-underwater-refinance/feed/ 0 MN Home Ownership Center vs. Time Magazine http://www.knowyourhomeloan.com/mn-home-ownership-center-vs-time-magazine/ http://www.knowyourhomeloan.com/mn-home-ownership-center-vs-time-magazine/#comments Mon, 30 Aug 2010 15:05:54 +0000 Carrie http://www.knowyourhomeloan.com/?p=812 With all the media about the hurting housing market, it was bound to happen. Time Magazine’s September issue show a beautiful home on the cover and then entices readers with the headline “Rethinking Homeownership.” Although I believe that the article “The Case Against Homeownership” is simply talking about the NOW situation in the market, what they are missing is that investing in homeownership is one of the largest drivers in wealth and stability over the long run. The Minnesota Home Ownership Center takes on the magazines article and makes it’s case for why home ownership IS a good thing(Although it may not be for everyone). The Minnesota Home Ownership Center goes on to show why the problem isn’t home ownership, but instead a culmination of factors that is the problem. The one solid fact that cannot be argued is that preparation and education is important when one decides to look into home ownership. The Home Stretch workshop is designed to help those who are thinking about home ownership. Home Stretch is a valuable tool to first time home buyers and should be considered by anyone thinking about or who has decided to make an investment in their future through home ownership.

Please check out the blog post written  on Minnesota Home Ownership Center’s blog to read the rest of the story.

Owning a home can be one of the best things you can do to invest in your future. Not only financially, but emotionally as well. I agree that is isn’t a decision to be taken lightly, but with the proper education and expectations, making a house a “home” is a positively wonderful experience.

[contact-form] ]]> http://www.knowyourhomeloan.com/mn-home-ownership-center-vs-time-magazine/feed/ 0 FHA To Make Premium Fee Change Effective Oct 4, 2010 http://www.knowyourhomeloan.com/fha-to-make-premium-fee-change-effective-oct-4-2010/ http://www.knowyourhomeloan.com/fha-to-make-premium-fee-change-effective-oct-4-2010/#comments Wed, 11 Aug 2010 15:13:50 +0000 Carrie http://www.knowyourhomeloan.com/?p=796 With all the recent news about H.R. 5981, I thought I’d share that we now have through the entire month of September before the change will take place with FHA mortgage insurance premium fees. It will effect new case numbers on or after October 4, 2010.  (FHA case numbers are assigned when the lender orders an appraisal on the property).  SO – borrowers payments/structure won’t change on purchase agreements  received before October 4th, 2010.  This is a good reason for those of you looking to buy a home using a FHA loan, to find a home in September!   If you don’t understand the impact, contact me and I’ll explain or go through numbers specific to you!  It can make a big payment difference depending on loan amount.

STATEMENT BY DEPUTY ASSISTANT SECRETARY VICKI BOTT

 Tuesday, August 10, 2010

 ”Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010

“Over this past week, the industry responded with support of the new fee structure,  but voiced strong concern about having system changes ready in time to meet the original September 7, 2010 deadline. Since these system changes impact regulatory disclosures, lenders expressed they must have the additional time to implement and test systems. FHA took this feedback seriously and has accommodated the need for additional time.”

Note: FHA will lower its upfront premium simultaneously with the increase to the annual premium. FHA’s upfront mortgage insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase to 85-90 basis points on amortization terms greater than 15 years 

 

To read about the original announcement on H.R. 5981, click here.

[contact-form] ]]> http://www.knowyourhomeloan.com/fha-to-make-premium-fee-change-effective-oct-4-2010/feed/ 0 Dakota County CDA Announces New Rate http://www.knowyourhomeloan.com/dakota-county-cda-announces-new-rate/ http://www.knowyourhomeloan.com/dakota-county-cda-announces-new-rate/#comments Fri, 02 Jul 2010 14:36:10 +0000 admin http://www.knowyourhomeloan.com/?p=637 Here’s a great beginning for your holiday weekend –

The Dakota County CDA has announced a rate change for the first mortgage. The new rate is 4.75% for all loans reserved beginning July 2, 2010 and continuing until further notice.

The Dakota County CDA offers 2 different loan programs that can be used together to benefit first time home buyers. MN Home Loan Partners is one of the approved providers for the First Time Home Buyer Program that allows home buyers a low fixed rate (new rate of 4.75 as mentioned above). First Time Buyers that meet the income limits may qualify if they are purchasing an existing home in Dakota County or new construction in the following cities: Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St Paul, Sunfish Lake and West St Paul.

Home buyers accessing the Dakota County CDA First Time Home Buyer Program can also apply for the down payment and closing cost assistance loans of up to $10,000 depending on household income. These down payment and closing cost loans are at zero percent interest rates and there are no monthly payments. The loan gets repaid when the primary mortgage is paid off, sold, or refinanced. Check our Dakota County CDA blog post for income limits.

To find out if you are eligible for the Dakota County programs available, contact us.

Would you like to learn more about how to qualify for a mortgage? Contact Carrie Guarrero Today!

Carrie Guarrero is producing Regional Manager and Vice President of Cornerstone Mortgage Company in Burnsville, Minnesota. If you are looking for Burnsville real estate, contact Carrie first!

]]> http://www.knowyourhomeloan.com/dakota-county-cda-announces-new-rate/feed/ 0 Tax Credit Closing Date Extended http://www.knowyourhomeloan.com/tax-credit-closing-date-extended/ http://www.knowyourhomeloan.com/tax-credit-closing-date-extended/#comments Thu, 01 Jul 2010 18:37:44 +0000 admin http://www.knowyourhomeloan.com/?p=633 Congress was busy yesterday. The following bills were passed:

1. Tax Credit Closing Date deadline - The Senate last night passed by unanimous consent HR 5623 that extends the closing date deadline for loans eligible for the homebuyer tax credit to September 30, 2010. The bill will be sent to President Obama for his signature, which should happen within a day or two.

2. Flood Insurance Program reauthorized - The Senate, also by unanimous consent, passed HR 5569, which extends the Flood Insurance Program to September 30, 2010. Because of the wording of the law, there is no gap in coverage during the time that the program has been lapsed. The law simply authorizes the program until a date certain and in this case the previous date of May 31, 2010 was replaced with the date September 30, 2010. So applications submitted during the lapse period will be processed, approved and coverage will begin on the date of the application.

3. Conference Report on Dodd-Frank Financial Reform Bill - The House, by a vote of 237-192, passed the Conference Report on HR 4173, the Dodd-Frank bill. Since the Senate adjourned last night until July 12th, the bill will not be enacted into law until sometime after the Senate returns.

What the Congress did not do: The House has still not taken action on HR 4899, which contains the revisions to the USDA Single Family Home Loan Guaranty program. The House is still in session today – July 1 – and the bill is on the House calendar for potential action. If the House passes HR 4899 with the amendments added by the Senate, then the bill will promptly be sent to the President for his signature and the USDA program will be back in business shortly.

However if the House rejects the Senate amendments then no further action will take place until the week of July 12th. Please remember that HR 4899 contains a number of different items that have nothing to do with the USDA program. If there is a disagreement between the House and Senate it will be over those items. The USDA revisions the Senate inserted, increasing the upfront fee to 3.5% and authorizing, but not requiring an annual fee of 0.5%, are expected to be the final changes.

]]> http://www.knowyourhomeloan.com/tax-credit-closing-date-extended/feed/ 2 Home Buyer Tax Credit Extension Update http://www.knowyourhomeloan.com/home-buyer-tax-credit-extension-update/ http://www.knowyourhomeloan.com/home-buyer-tax-credit-extension-update/#comments Wed, 30 Jun 2010 16:12:13 +0000 admin http://www.knowyourhomeloan.com/?p=624 Looks like parts of the Senate are still trying to extend the deadline for the home buyer tax credit closing date, by attaching it to the unemployment benefits bill affecting hundreds of thousands of laid-off Americans

The plan is to create one bill that combines the unemployment benefits with an extension of a popular tax credit for people who buy new homes.

Under current law home buyers who signed purchase agreements by April 30 must close on their new homes by today to qualify for credits of up to $8,000. The bill would extend that date until Sept. 30 to complete the purchases, close on the homes and qualify for the credit.

Democrats hope to pick up Republican support for the bill by combining the two provisions. They have been trying for weeks to pass an extension of unemployment benefits as part of a larger tax and spending package, but the larger bill died in the Senate last week.

Without an extension unemployment payments would continue to be phased out for more than 200,000 people a week.

Senate Majority Leader Harry Reid filed a motion Tuesday to end debate on the bill and force a vote by tomorrow.

The House passed a separate bill Tuesday to extend the deadline for the home buyer tax credit.

It is estimated that the closing date extension would benefit over 180,000 home buyers who are still trying to close on homes they entered purchase agreements on before the April 30th deadline.

]]> http://www.knowyourhomeloan.com/home-buyer-tax-credit-extension-update/feed/ 0 Tax Credit Extension – Did it pass? http://www.knowyourhomeloan.com/tax-credit-extension-did-it-pass/ http://www.knowyourhomeloan.com/tax-credit-extension-did-it-pass/#comments Fri, 25 Jun 2010 00:35:50 +0000 Nichole http://www.knowyourhomeloan.com/?p=595 There has been a lot of talk about whether or not the government will extend the tax credit closing deadline beyond June 30, 2010. Please read a post by Susan Hofflander on the latest update on whether or not the tax credit extension has passed.

Update: June 25th, 2010 - The proposed three-month extension for home buyer tax credits appears dead.

The Senate fell three votes shy Thursday of passing a bill that included the extension. It would have given home buyers until Sept. 30 to close on their deals. Now it appears they’ll have to close by June 30 or lose the $8,000 and $6,500 tax rebates.

The measure also would have renewed a national flood insurance program. Many home buyers in flood-prone areas of Florida need the insurance and can’t close their deals without it.

]]> http://www.knowyourhomeloan.com/tax-credit-extension-did-it-pass/feed/ 0 Mortgage rates sink to lowest level on record http://www.knowyourhomeloan.com/mortgage-rates-sink-to-lowest-level-on-record/ http://www.knowyourhomeloan.com/mortgage-rates-sink-to-lowest-level-on-record/#comments Thu, 24 Jun 2010 19:29:26 +0000 admin http://www.knowyourhomeloan.com/?p=592 By Alan Zibel
Associated Press

WASHINGTON — Mortgage rates fell this week to the lowest level on record, giving consumers added incentive to lock in low payments on home purchases and refinancings.

Mortgage company Freddie Mac said today that the average rate for 30-year fixed loans sank to 4.69 percent, from 4.75 percent last week.

That’s the lowest since Freddie Mac began tracking rates in 1971. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.

Mortgage rates have fallen over the past two months. Investors wary of the European debt crisis and the turbulent stock market have shifted money into the safety of Treasury bonds, driving down yields. Mortgage rates tend to track the yields on long-term Treasury debt.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on 15-year, fixed-rate mortgages fell to an average of 4.13 percent, the lowest on records dating to September 1991 and down from 4.2 percent a week earlier.

Rates on five-year, adjustable-rate mortgages averaged 3.84 percent, down from 3.89 percent a week earlier. That was also the lowest on Freddie Mac’s records, which only date back to January 2005.

Average rates on one-year, adjustable-rate mortgages fell to 3.77 percent from 3.82 percent. That was the lowest average since May 2004.

The rates do not include add-on fees
known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 a point for 30-year, 5-year and 1-year loans. The average fee for 15-year loans was 0.6 of a point.

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