Spokane Home Loan -- Casey Brischle -- Mortgage Professional

Upfront MIP changing from 1.75% to 2.25%

I just wanted to let everyone know that the FHA change in upfront Mortgage Insurance Premium is quickly approaching!! April 5th is the date that FHA raises the upfront premium from 1.75% to 2.25% of the loan amount. 1/2 a percent increase is pretty significant and should motivate buyers to focus in - Simple math on a $200k loan the borrower will be looking at an extra $1,000.00 in Mortgage Insurance Premium!! The key to avoiding this hike is to get your FHA buyer under contact prior to 4/5/10 so that an FHA case number can be pulled and the 1.75% upfront MIP fee can be used. Any case numbers pulled post April 5th will reflect the 2.25% upfront MIP fee.

6% Seller Contributions dropping to 3%

I just wanted to touch base on the pending FHA change in Seller contributions. While dropping the seller contribution % from 6% to 3% is a pending policy change, a formal FYI has not yet been issued yet. So at the time, FHA max seller contribution is still reflected to be 6%.

There is no set in stone time table on the change, and I am sure once it is released it will not be immediate. I would feel comfortable writing in 6% seller contributions into any residential offer - if that is what the buyers want.

All for now. Feel free to contact me with any questions and/or concerns!

Thanks!

Contrary to popular belief, 100% financing is available in the Spokane market. USDA Rural Development Guaranteed Loans are available to help those buyers that want to buy but don't have funds for a down payment, or want to save the money for improvements in the house they are buying.

Areas in Spokane County that qualify for this special financing include, parts of Liberty Lake, North and South Spokane Valley, Deer Park, Airway Heights and reaching into Idaho, Post Falls!

USDA HOME LOAN BENEFITS:

· No Down Payment Required. Borrowers who qualify for a USDA Rural Development home loan have the flexibility to pay nothing out of pocket for a down payment.
· No mortgage insurance payments. Unlike an FHA Program, a USDA Rural Development home loan does not require a monthly MIP to be paid by the borrower.
· Competitive 30 year fixed interest rates
· $417,000 loan limit. Not strapped to the $271,050 Loam limit that FHA currently uses for Spokane County
· Home repairs can be included in loan. Looking to purchase a "handyman special" home? Homes that need refurbishing or rehabilitation may qualify for extra funds to be included in the home loan mortgage to go toward repair costs

The only drawback is that there are some income limitations that vary with each home loan. However, the good part is that there still is 100% financing out there and that gives you 1 more option in the home buying process!

Feel free to call me with questions or to see if the property you are listing or the one you are looking at qualifies!

Let me preface this by stating that I am by no means a "The end is coming! Act now! There is no better time to buy or refinance!" type of a guy. That said, "The end is coming! Act now! There is no better time to buy or refinance!"

:)

In all honesty, we do not know how the MBS bond Market will react at the end of March when the government uses the last of the allotted funds to make their final MBS purchase, however most experts predict the rates will rise. Adam Quinones of Mortgage News Daily goes into an excellent indepth 3 part breakdown on the subject here: http://www.mortgagenewsdaily.com/02112010_fed_exit_mbs_purchase_program.asp

Bottom line if you were asleep through most of 2009 and did not refinance out of your ARM or your high 5%/6%+ mortgage into a loan under 5%,

Or if you qualify and can afford a home, but are still renting, your time to get off the fence
and take advantage of rates under 5% and ridiculous tax credits for home purchases is dwindling.

Also, interesting to note, he predicts many mortgage professionals will leave the industry (I will not be one of them) due to the overall mortgage loan production decreasing by as much as 40% year over year (Allbeit 2009 was a banner year with the historically low interest rates). Most business will come from Purchases in 2010, as most qualified borrowers will not want to refinance out of their 4.xx% mortgage into a rate that may be in the mid to upper 5% range (maybe higher?).

I wanted to drop a quick blog to get let you know about a campaing that I hold dear to my heart.

The YMCA's Partners for Youth Campaign is underway and I'm raising money for it! This campaign is something I am VERY passionate about as it promotes diversity, changes lives, and gives hope directly to the underprivileged families and children in the Spokane area. Feel free to check out my personal online giving page to read about the program and check out what I am committing myself to for the remainder of the campaign!! The first week was rough, but I'm surviving - calves are tight, but I'm getting by! :)

http://www.firstgiving.com/caseybrischle

While there, you can donate online or if you feel more comfortable, give me a call or email to arrange a donation in person or by mail (all donations are tax deductible). Please know, all online donations are secure and sent directly to YMCA OF THE INLAND NORTHWEST by Firstgiving, who will email you a printable record of your donation.

ANY AMOUNT HELPS! Seriously. Pack a lunch to work one day, donate $5.00. Every bit helps and the Y stretches every dime it gets to its fullest potential.

YOU CAN MAKE A DIFFERENCE!

Additionally, please feel free to send my page on to anyone who might like to donate!

For the past couple weeks or so mortgage rates have held relatively steady. Most pricing about 5.0% with rates dropping as low as 4.75% here or there (30yr fixed mortgage).

This morning (2/3/10), the Mortgage Bankers Association released their weekly Mortgage Applications Index. The survey covers over 50% of all residential mortgage applications taken by banks thoughout the US. The point of the survey is to display consumer demand for mortgage loans. Obviously, if inital applications were to rise, it would point to an increase in home buying interest, a key component not only to the housing market, but the economy as a whole as well. There is a trickle down effect. As home sales % go up, more jobs are created to build, more items are purchased to fill the home etc. etc.

Last week the news was the exact opposite of this week. Relatively grim outlook with Mortgage apps dropping 10.9%. The Refinance Index fell 15.1% while the Purchase Applications Index moved 3.3% lower.

However! This morning the MBA told us that mortgage applications bounced back in the most recent week and total apps were up 21.0% week over week. Home pruchases were 10.3% higher and refinances were 26.3% higher.

Why the jump you ask? I beleive it is for two reasons. 1. The holidays are over and the first time home buyers are beginning to see the light at the end of the tunnel (in regards to the government home buyer stimulus). REMEMBER you need to be under contract by April 30, 2010!! and 2. The people that missed out on the 4.5%-4.75% rates last year and have been waiting for them to drop back down are seeing the same light at the end of the tunnel (this goverment stimulus - Govt buying MBS Bonds however, expires at quarter 1's end).

SOOO...there is a very real possibility that today's rates could end up being the lowest rates offered in 2010!! Unless of course Uncle Sam wants to open up their wallet and contiue to purchase in the MBS market or offer to extend the home purchase stimulus --BothH of which I find hard to believe.

If you have been waiting to refinance or to buy,
get out there and start the process before you miss the boat of sub 5% rates!