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

04/11/2009 Mortgage Monitor

APRIL 11, 2009

APPLICATIONS FOR PURCHASE AND FOR REFINANCING UP NICELY AS MORTGAGE RATES REMAIN UNDER 5 PERCENT.
The 30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending April 9, 2009, up from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.88 percent.
Click Here for more details. View Historical Rates: Click Here

OBAMA SAYS TIMING RIGHT FOR MILLIONS TO REFINANCE.
"Rates are as low as they've been since 1971," with the 30-year rate at 4.78%, Mr. Obama said after meeting with homeowners who have refinanced their mortgages recently. He attributed the decline in part to "extraordinary actions" taken by the Federal Reserve, and in part to actions taken by the administration. Click Here for full article.

Q AND A FOR THOSE CONSIDERING A PURCHASE OF A HUD HOME.

What is a HUD home?
HUD properties are homes in which the Federal Housing Administration insures the lender against loss in case of a buyer's loan default. Will HUD make property repairs? All HUD owned properties are sold "as is" but you may find many properties in move in condition.

What is FHA 203b financing?
FHA’s 203b loan is the basic loan package for the purchase of a home. This home purchase must be your primary residence; unlike conventional loans, the down payment may be a gift from a family member. Your FHA loan can include financing for the loan closing costs and the initial insurance payments; all you need to do is develop a source for the down payment. This loan may be used in conjunction with assistance from state and local housing programs including MSHDA. For individuals with limited down payment, limited credit or limited income the FHA 203b option offers the possibility of a non-occupant co-buyer to facilitate financing.

Click Here for HUD home listings.

What do the FHA Financing categories mean?
Insured (IN) An “insured” property means that the FHA believes the home requires less than $5,000 in repairs. This also means that the property qualifies for the FHA 203b Financing. In addition to the allowable lower down payment, FHA may pay some or all closing costs if requested.
Insured with repair escrow (IE) An "insured with repair escrow" property means that the property meets the requirements for FHA 203b financing. In addition to providing the home loan, HUD is willing to set up an escrow account at closing to help with certain identified repairs. These repairs are usually estimated to be less than $5,000.
Uninsured (UI) An "uninsured" property means that the property requires more than $5,000 in estimated repairs. Properties listed under this category do not qualify for financing under the FHA 203b. In most cases uninsured properties are purchased with cash or convention mortgage monies.

What does “203K Eligible” mean?
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.

What are “Owner Occupant Sales Incentives”
Some HUD properties will offer an “Owner Occupant Sales Incentive” including $100 Down Payment Finance Option (FHA financing only) and / or $2,500 Sales incentive (for properties with a purchase price $25,000 or greater).

How does a buyer looking for a primary residence compete with investor bids?
For the first 10 days after a HUD property is listed on the HUD website (see link above) and on the Realtors Multiple Listings Service (consult your Realtor), bids are considered exclusively from individuals who plan the purchase the home as their primary residence. Investors are allowed to bid on these listings only after the 10 day HUD moratorium, if the property hasn't received an acceptable owner-occupant offer.

Can I purchase a home directly from HUD?
When buying a HUD property, the service of a Realtor is required. There are certain forms, procedures and requirements that HUD wants to make sure all potential bidders are advised of prior to considering a HUD homes purchase.

Mike Paige