David Krichmar- DaveYourMortgageguy.com

HUD(FHA) just announced that the monthly mortgage insurance is increasing on all case numbers ordered on and after April 9^th. This increase will be .10 on all FHA mortgages that have monthly mortgage insurance. A FHA case number is ordered when you start a new FHA loan. This change is for purchase loans and regular refinances(not streamlines). HUD is also increasing the upfront mortgage insurance amount from 1% to 1.75%. To give this change some perspective, the increase in up front mortgage Insurance will increase the payment on a $200k loan by $5 a month.

Here are the exact changes to the monthly Mortgage Insurance:

30yr Mortgage(20 yr, etc)

LTV: 95% + Mortgage Insurance: 1.25

LTV:95% and under. Mortgage Insurance: 1.20

15yr Mortgage

LTV:90%+ Mortgage Insurance: .60

LTV: 90% and under. Mortgage Insurance: .35

And don’t forget any FHA 15yr mortgage with a Loan to Value of 78% and less has no mortgage insurance. This increase of .10 to the monthly mortgage(30yr) would crease the payment of a $200k loan by $17 a month

And incase you missed my earlier FHA update, starting April 1^st all collections that have a total balance of $1000 or more must be paid off.

On April 14, 2012 from 8am to Noon, the New Territory HOA is providing a hazardous waste collection event. It will be held at the Ellis Creek Pool Parking Lot. This event is an awesome opportunity to get rid of hazardous items we should not be keeping in our houses. Here is the list of acceptable items:

· Paint products

· Pesticides, fertilizers

· Motor Oils, filters, antifreeze, gasoline, fuels

· Household cleaners, solvents

· Car and home batteries

· Pool chemicals

· Televisions, computer screens, computers, printers, scanners, fax machines

· Cell phones, stereos

· VCR’s, dvds, blue ray dvds,

Here is what not to bring: business waste, medical waste, radioactive waste, ammunitions, explosives, smoke detectors, washers, dryers, refrigerators, freezers, air conditioners, trash and tires.

Please keep in mind this is for New Territory Residents Only. And you must show valid identification and current water/utility bill to prove you are a resident before dropping off your items.

Here is your weekly interest rate update:

Conventional 30 year Mortgage: 3.875%

Credit score:740

LTV:80%

Loan Amount:$200k

APR: 4.25%

FHA 30 year:3.75%

Credit Score:640

LTV:96.5%

loan amount:$200k

APR:4.85%

Conventional 15 year:3.25%

Credit score:740

LTV:80%

Loan Amount:$200k

APR:3.65%

Call me today if you are thinking of refinancing or buying a home, for the best mortgage rate possible.

HUD just announced that on all FHA loans with case numbers ordered on April 1^st and after, borrowers must have collections paid off(total balance over $1000). This is a major announcement that sort of fell under the radar. But has major ramifications. Before the change FHA did not require any collections to be paid off. Here is the exact wording from HUD:

If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing. Mortgagees must document the case binder showing each account was resolved or paid in full.

If the total outstanding balance of all collection accounts is less than $1,000, the borrower is not required to pay off the collection accounts as a condition of mortgage approval.

What does this mean? If the borrower has a total of $1000 in collection balances then they must be paid off or proof the borrower has been in a payment plan for 3mths. This would mean a total of $1000 or more. Not just one account with a $1000 collection balance.

This change will greatly affect FHA loans and their approvals. Please call or email me with any questions.

Here is your weekly interest rate update:

Conventional 30 year Mortgage: 3.875%

Credit score:740

LTV:80%

Loan Amount:$200k

APR: 4.25%

FHA 30 year:3.75%

Credit Score:640

LTV:96.5%

loan amount:$200k

APR:4.85%

Conventional 15 year:3.25%

Credit score:740

LTV:80%

Loan Amount:$200k

APR:3.65%

Call me today if you are thinking of refinancing or buying a home, for the best mortgage rate possible.