Brewster, MA

Frequently Asked Question: FHA / MIP / VA Funding Fee

Q: Q: I am going over our Closing Costs Worksheet (for our preapproval) and I see "FHA/MIP/VA Funding Fee". What is this? Is this something that has to be paid at closing or can it be added into the loan?

A: FHA has a one-time upfront mortgage insurance premium (UFMIP) of 1.75% of the mortgage amount. If you are doing an FHA loan, you can either pay the UFMIP out of pocket or roll it into the mortgage. If you are doing a 15 year mortgage with less than 10% down or a 30 year mortgage regardless of the amount down, there is also a monthly mortgage insurance premium.

VA has a one-time funding fee that varies in amount, and depends on the type of veteran, the type of transactions, and whether or not it's a first time use. If you are doing a VA loan, you can either pay the VA Funding Fee out of pocket or roll it into the mortgage. With VA loans, there's no monthly mortgage insurance premium.

USDA has a one-time funding fee of 2.0% of the mortgage amount. If you are doing an USDA loan, you can either pay the funding fee out of pocket or roll it into the mortgage provided that the house appraises for at least 2% more than the purchase price or its value. With USDA loans, there's no monthly mortgage insurance premium.

If you are not doing an FHA or VA or USDA, then there is no funding fee or upfront mortgage insurance premium.

The Mortgage Interest Rate Lock Advisory for Brewster MA for November 12 2009

Here are some of the events affecting mortgage interest rates today in Brewster, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.12 this morning - down 3/32 from Tuesday's close.

The chart below shows today's price trend of the FNMA 30-Year 4.5% coupon:

The FNMA 30-Year 4.5% MBS coupon is currently trading at 101.28 - up 5/32 from its opening. Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and mortgage interest rates come down with it. Yesterday was "roll-over" day, so I expect that mortgage interest rates will be about the same in price this morning as compared to Tuesday.

Recent Activity in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• There are no economic reports scheduled for release today.
  
  
• Jobless Claims - there were 502,000 new claims for unemployment last week, the lowest since January, 10,000 less than predicted, and 12,000 less than the upwardly adjusted new claims that were filed the previous week. The 4-week average declined for the 9th straight week by 4,500 to 519,750. And continuing claims for unemployment declined for the 7th straight week by 139,000 to 5.631 million. However, the decline in continuing claims is most likely attributed to the expiration of unemployment benefits. With a decreasing trend in the filing of new claims for unemployment, this suggests that the labor market is improving. However, this data is usually not considered to be very important to the mortgage market and had no impact on mortgage interest rates this morning.
  
  
• Fed's MBS Purchase Program - the results of this week's purchases of mortgage backed securities by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $993 billion in mortgage backed securities this year. The Feds plan on purchasing up to $1.25 trillion in mortgage backed securities through March 31st.

In other news, the Treasury will auctioning $16 billion in 30-Year Bonds today. If the Treasury auctions are met with a strong demand from investors, we should see higher prices for mortgage backed securities and lower mortgage interest rates. However, if we see a lackluster demand, we should see lower prices for mortgage backed securities and higher mortgage interest rates.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Overall, the single most important day this week will be Friday with the release of the Employment Situation Report. Activity in the stock markets will continue to be volatile which in will have an impact on trading of mortgage backed securities. If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional.

My Mortgage Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within the next 7 days
• Float if my closing was taking place between 8 and 30 days
• Float if my closing was taking place between 31 and 45 days
• Float if my closing was taking place between 46 and 60 days

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.

Get today's mortgage interest rates for your situation in Brewster, MA.

Get a Free List of Websites of Government and Bank Foreclosure Listings in Brewster, MA

There are a number of websites that contain free listings of government and bank foreclosed homes in Brewster, MA. These websites contain descriptions, color photos, and addresses of the foreclosed homes for sale in Brewster, MA. And, most of these websites have government and bank foreclosure listings nationwide.

There's no charge to search the foreclosure listings on any of these websites, and there's no 7-day free trial period either. Virtually all of these websites do not require any personal information to get access to the government and bank foreclosure listings. You can access these foreclosure listings anytime you want and as often as you want - free of charge!

Click here to get your own directory of websites of government and bank foreclosures in Brewster, MA. While registration is required to get access to the free directory of websites of foreclosures, the information will be provided to you instantly, and is completely free-of-charge and without any obligation!

HA, VA, and USDA Rural Development Loans in Brewster, MA

Are you looking for a home mortgage loan in the Brewster, MA area?

Then you've come to the right place! Northeast Community Mortgage is a mortgage broker serving Brewster, MA, and many of the surrounding areas.

When you decide to buy a home or refinance a mortgage in Brewster, MA or in the surrounding area, your search for a home mortgage loan should start and end here. With so many lenders to choose from in the greater Brewster area, you should choose one you can trust to find the mortgage loan that will best meet your needs.

As a mortgage broker, we help our clients obtain a loan from the lender who has the terms that best matches their needs. In terms of mortgage programs, we specialize in FHA, VA, and USDA Rural Development loans. We also offer fixed and adjustable rate conventional and conforming jumbo loans. So, before your first house-hunting trip, whether it's in Brewster or in any of the surrounding areas, we'll help you select the best financing program for your needs.

Sure, there are dozens of big bank mortgage lenders nationally, but you need a lender in Brewster. Why? Because we know Brewster and the surrounding areas. We know the local real estate agents, appraisers, inspectors, and so much more.

We also have state-of-the-art technology that makes the mortgage loan process as easy and fast as possible, all while delivering personal customer service that can't be beat. We'll also take care of all the details, and make your transaction as smooth and worry free as possible.

Our services and financial resources enable us to make loans other lenders do not. We pride ourselves on being a mortgage broker with experience. We are also well-respected within the wholesale loan community, as evidenced by our relationships with lenders such as Provident Funding, Wells Fargo, and Flagstar, to name a few.

Don't gamble your family's largest investment with a big name lender that may not know Brewster. Choose us, the Brewster mortgage and loan specialists!

Home mortgage loans in Brewster:

• We'll help you find the perfect home loan or mortgage.

Refinance mortgage loans, or refinancing your current home in Brewster:

• We help Brewster families lower their mortgage payments and/or lock in lower interest rates for their home loans every day.

FHA Loans, VA Loans, USDA Rural Development Loans, and so much more!

• No matter what type of home loan you need, we're ready to help.

We'll give you the personal attention you deserve and treat you as a valued customer. Click here to get the best available rates for your situation in Brewster, MA!

The Mortgage Interest Rate Lock Advisory for Brewster MA for October 1, 2009

Here are some of the events affecting mortgage interest rates today in Brewster, Massachusetts.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened up 3/32 at 101.34.

The price of the FNMA 30-Year 4.5% MBS coupon closed down 3/32 yesterday at 101.25 (as shown by the white line). MBS is currently trading up 12/32 at 101.61 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and mortgage interest rates come down with it. I expect that mortgage interest rates will be 0.125% - 0.25% better in price this morning as compared to yesterday.

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Personal Income and Outlays for August - There was a 0.2% rise in personal income in August, up from 0.0% the previous month. Consumer spending is up 1.3% - mostly due to auto sales. There was a 0.2% increase in spending the previous month. Consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. Normally, if we see a larger than expected increase in income, it could raise concerns about inflation and make long-term securities such as mortgage backed securities less attractive to investors. However, this report appears to have had no impact on mortgage interest rates this morning.
  
  
• The Institute for Supply Management (ISM) Index for September - this index provides us with an indication of manufacturer sentiment. The reading for September fell back to 52.6, a decrease from last month's reading of 52.9. Analysts were expecting a reading of 53. A reading above 50.0 means that more than 50% of the executives surveyed felt business has improved. This is good news for the mortgage market because it indicates the manufacturing sector is weaker than expected.
  
  
• Jobless Claims - there were 551,000 new claims for unemployment last week, up from the 530,000 new claims filed the previous week. There were 530,000 new claims filed the previous week. However, the 4 week average stands at 548,000, down 25,000 from a month ago, and is at the lowest level of the year. In addition, continuing claims for unemployment fell 123,000 to 6.09 million. With the continuing high rate of people unemployed, the threat of wage based inflation remains subdued. Employers do not have to pay higher wages to attract new employees during high unemployment times as people will be happy just to have a job. This data is usually not considered to be very important to the mortgage market.
  
  
• Fed's MBS Purchase Program - The results of this week's purchases of mortgage backed securities by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $885 billion in mortgage backed securities this year. The Feds plan on purchasing up to $1.25 trillion in mortgage backed securities through March 31st.

In other news, Ben Bernanke, Chairman of the Federal Reserve, will testify before the House Committee on Financial Services today on regulatory reform. He is calling for legislation to end the "too big to fail" syndrome for financial institution as well as for improving consumer protection in their financial dealings.

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. Overall, look for some volatility in the mortgage market today.

My Mortgage Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within the next 7 days
• Float if my closing was taking place between 8 and 30 days
• Float if my closing was taking place between 31 and 45 days
• Float if my closing was taking place between 46 and 60 days

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.

For the best mortgage interest rates in Brewster, MA, click here.