Sooner rather than later in purchasing a new home.

Up to $8000 tax credit for First Time Buyers, $6500 for current Home Owners.

• Must have valid purchase agreement by 04/30/2010. That may seem like forever, but it’s only 23 weeks with 5 holidays mixed in there. Click here for more info.

Up to 6% seller contribution and 3.5% down on FHA financing.

• 
  
  FHA financing has been under lots of scrutiny recently due to high delinquency. Some solutions rumored have been increasing the down payment amount, eliminating seller concessions and gift funds, tougher credit requirements and an increase in mortgage insurance premiums. Click here for more info.
  
  
  

Historically low interest rates. Click here.

• 
  
  Rates have been artificially suppressed do to US Treasury participation in Mortgage Backed Securities. This may be coming to an end. Click here for more info.
  
  
  

Lenders can still provide lender credit to be used toward closing costs for customers short on cash.

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  I may be able to provide 2-3% of the loan amount as a lender credit toward closing costs and prepaids – this will be reflected in the interest rate.
  
  
  

The math works when comparing renting to owning.

• 
  
  Rent payments are higher today then a year ago due to the demand for rentals. Rates are low, sale prices are low. $1000 mortgage principal and interest payment will afford you over $180,000 with today’s rates.
  
  
  

Lenders are offering initially FREE “Borrowers Protection Plans” covering your payment in the event of Involuntary Unemployment, Disability, Hospitalization and more.

Inventory of housing available for sale.

• 
  
  The tax incentives recently extended just may work (up to $8000 for First Time Buyers, up to $6500 for current home owners). Will the new found buyers drive up the prices of available inventory.
  
  
  

10/02/2009 Mortgage Monitor

October 2, 2009

30 year fixed rate mortgage nearing all time low.
The 30-year fixed-rate mortgage averaged 4.94 percent with an average 0.7 point for the week ending October 1, 2009, down from last week when it averaged 5.04 percent. Last year at this time, the 30-year FRM averaged 6.10 percent. The last time the 30-year fixed rate mortgage was below 5 percent was the week ending May 28, 2009, when it averaged 4.91 percent. More details --->

FHA borrowers may need bigger down payments in bill.
Representative Scott Garrett, a New Jersey Republican, is pushing a measure to recoup some of the FHA's losses by increasing the minimum down payment required for an FHA loan to 5 percent from 3.5 percent. More details --->

Only 60 days remaining for First Time Buyer Tax Credit.
First time buyers (have not owned a home in last 3 years) are still able to purchase with little to no money down and close by the program end date. But time is running out. More details --->

New GFE and HUD-1 requirements take effect 01/01/2010
HUD is requiring that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a new HUD-1 settlement statement. New regulations take full effect on January 1, 2010.
Frequently asked questions.
New GFE form.
New HUD1 form.

Mike Paige

07/27/2009 - The Mortgage Monitor

New Truth in Lending Act (TILA) requirements take effect 07/30/2009.
Key elements you should know about the new law:

* If financing the earliest any home purchase transaction can close is 7 business days after the home buyer is issued his or her initial mortgage disclosures from the lender.
* Upfront fees cannot be collected by the lender (except for credit report) until the initial disclosures are received by the customers.
* The homebuyer must be provided with a copy of his or her appraisal a minimum of 3 business days prior to closing.
* An increase of more than .125% in the Annual Percentage Rate (APR) from the initial disclosure will require a reissue of disclosures to the customer an additional minimum of 3 days wait before closing. Keep in mind the APR may not be affected by just a rate change but a change in fees collected.

Rates Continue at Historic Lows
The 30-year fixed-rate mortgage (FRM) averaged 5.20 percent with an average 0.7 point for the week ending July 23, 2009, up from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 6.63 percent.

Maximum Loan to Value for Obama Administration's Refi Program Increases to 125%
On July 1, 2009 HUD announced a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans. The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements. Read More->

First Time Home Buyers - 127 Days Remaining - Don't miss out.
127 days left for First Time Buyer Tax Credit (have not owned your own home in last 3 years). Financing is easy. Buy with little to no money down and still get up to $8000 back from government in weeks. Historically low rates. Why would you rent? http://www.miftb.com/

Mike Paige

07/06/2009 - Mortgage Monitor

July 6, 2009

Lower Long-Term Rates a Help to Housing Market.
The 30-year fixed-rate mortgage (FRM) averaged 5.32 percent with an average 0.7 point for the week ending July 2, 2009, down from last week when it averaged 5.42 percent. Last year at this time, the 30-year FRM averaged 6.35 percent.

Maximum Loan to Value for Obama Administration's Refi Program Increases to 125%
On July 1, 2009 HUD announced a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans. The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements.

Revised "Truth in Lending" Disclosure Requirements Take Effect on July 30, 2009
Lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009. Here are key highlights of the changes:

* The new requirements apply to all mortgages secured by a borrower's home, including primary and second homes and refinancings. Investor loans continue to be exempt.

* Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure).

* The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.

* The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.

* If the annual percentage rate (APR) increases by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan.

* The consumer may modify or waive both waiting periods for a documented personal financial emergency, but must receive the disclosures no later than the time of the modification or waiver.

Mike Paige

06/06/2009 Mortgage Monitor

30-Year At Highest Rate Since Week Ending December 11, 2008
The 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending June 4, 2009, up from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 6.09 percent.: Read More-> Historical Rates: Read More->

First Time Buyer Tax Credit Can Be Used on Closing Costs
However the can't be used to cover the minimum 3.5 percent minimum down payment requirement on FHA loans. The 3.5% required customer investment can still come as a gift from qualified family member, Fiancé, Fiancée, domestic partner, close friend, employer or labor union. Read More->

Now is the Time for First Time Buyers
Up to $8000 tax credit, buyers market, high inventory, historically low rates, little to now down payment. Read More->

Refinance Your Current Mortgage Up to 105% of Current Value?
Fannie Mae DU Refi Plus Program:

• No current lender requirement.
• The maximum loan to value (LTV) ratio is 105% on the first mortgage alone.
• There is no maximum combined loan to value (CLTV)ratio (first plus second mortgage).
• For new transactions with an LTV that exceeds 80%, mortgage insurance may not be required.
• Full appraisal may not be required.
• Refi Plus loan may be a primary residence, second home, or investment property.
• Lower credit scores may not be an issue.

Does Fannie Mae own your mortgage? Contact me for details.

Mike Paige

05/18/2009 Mortgage Monitor

30 YEAR FIXED AT 4.86%
The 30-year fixed-rate mortgage averaged 4.86 percent with an average 0.6 point for the week ending May 14, 2009, up from last week when it averaged 4.84 percent. Last year at this time, the 30-year fixed rate mortgage averaged 6.01 percent: Read More-> Historical Rates: Read More->

USE FIRST TIME BUYER TAX CREDIT AS DOWN PAYMENT ON FHA LOANS.
Buyers will be allowed to use their first-time homeowner tax credits as down payments when they get FHA-insured loans, Secretary of Housing and Urban Development Shaun Donovan announced. "FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to 'monetize' the tax credit through short-term bridge loans," Donovan said: Read More->

FIRST TIME BUYER WORKSHOPS
Is this a good time to buy a home? Is my credit good enough to qualify? How much money will I need? What type of mortgage financing should I get? What is the home buying process? Fast, no cost, pre-approvals. First Time Buyer workshops coming soon. Contact me for details.

Mike Paige

04/18/2009 Mortgage Monitor

APRIL 18, 2009

MOST MORTGAGE RATES RECEDE THIS WEEK

The 30-year
fixed-rate mortgage (FRM) averaged 4.82 percent with an average 0.6 point for
the week ending April 16, 2009, down from last week when it averaged 4.87
percent. Last year at this time, the 30-year FRM averaged 5.88 percent.
Click Here for more details. View Historical Rates: Click Here

www.amcmichigan.com