Most folks want to avoid PMI… but they don’t realize that they are happily paying a “kind” of mortgage insurance no matter what kind of loan they are getting!
Mortgage Insurance is not the insurance that covers you if you die, or are disabled and can not pay the mortgage… it’s the insurance that protects the BANK in the event you go into foreclosure.
Given the recent UP TICK in foreclosures, you can see why banks are requiring higher coverage amounts! If you are applying for a Conventional mortgage, and you are putting more then 20% on a property you plan to live in, you avoid this additional insurance…
If not, well, there are some cases whereby you can get it Lender Funded (meaning the rate is higher to cover the cost) or you might be offered secondary financing (often called a 80-10-10). OTHERWISE, you’re stuck… but it’s often tax deductible, and PMI is what’s keeping the mortgage wheels rolling, so play along!
If you are applying for a FHA mortgage - you're insurance premium is now 1% of the loan amount. In addition to this, FHA charges an annual premium (which is charged monthly) based upon a rate of 1.15% of the total loan amount, if you are making a minimal downpayment of less than 5%. For more information on the FHA PMI (or MIP), please click here.
USDA and VA loans both have Guarantee Fees. These fees are charged by the respective agencies – but I’ve always considered them as the “insurance” collected to cover the agency in the event of a default on the mortgage. The main difference between the Guarantee Fees at VA and PMI (or MIP) is that there’s no MONTHLY fee (plus they call it a fee, not insurance)!
USDA has a small monthly fee, but if you've used your VA Eligibility one time - it still might be cheaper to go with USDA.
If you have additional questions about MIP, PMI or Guarantee Fees, CALL US!
Steve and Eleanor Thorne, Mortgage Banker in Cary 919-649-5058
Originally Posted at NCFHAExpert - Different Kinds of Mortgage Insurance
In June of 2010 I wrote that I wasn't sure I really "GOT" the hole "Checking In" thing - and I wasn't sure I really WANTED people to know where I was all of the time! I had friends, though, who SWORE there was a way to make this work to my advantage... and so reluctantly, and not with a ton of enthusiasm, I checked in - occassionally.
18 months later, I'm ready to say:
I get it!
Social Media is a Conversation - those of us who are doing it, and doing it repetitively, uniquely, AS a Conversation - get that. You can create real relationships with people you never meet in real life... and you will find that as you actually treat each different "channel" as a means of creating a conversation, and you "LISTEN..." you will find people that want to interact with you too!
Here's what I've learned about the "Conversation" MY Friends are having on FourSquare vs just "Checking In":
I'm not finding as consistent a pattern with "Check Ins" from Google Places or Facebook or Yelp - although, I know that as I checkin with one of those, I'm automatically looking to see who is already there. So especially when I go to a Sporting Event (Go Wolfpack!) , I'm looking to see who is there in case a) I see them and b) I want to connect with them (usually on Twitter or Facebook). Ditto when we go out to eat. (If you are finding something different, I'd love to know about it!)
Am I checking in everyday, and everywhere I go?!? No. I don't do ANYTHING everyday! I'd A.D.D... ! But I can tell you that I'm more tuned in to this particular type of conversation, and I find it interesting, and fun! As a side note - I chose to connect my FourSquare checkins to Twitter, and my friends on FourSquare. I RARELY share info from FourSquare on Facebook - those are different friends, that I am trying to have a different conversation with.
If you have questions for us over at Mortgage World Headquarters, let us know! :-) 919-649-5058
The Real Estate BarCamps around the country have been going on for several years, in fact the third REBarCamp will be in Raleigh on October 21st. We have a habit of asking folks what they want to talk about prior to Camp - to kind of get the "juices going" and to be sure everybody has a voice.
At the recent REBarCamp in Pheonix, they judged the top 5 topics to be :
I would expect some of these same topics to be interesting at our camp - although I'm suspecting there will be less of the "beginner" stuff, and more of the Hyper Local Blog Content, and Time Management questions.
I'm also hoping we can talk about some of the things that we are all facing in the Industry right now - like, Outsourcing Short Sales... do you give it to an agent in your office, hire an attorney, or pay a third party?
Lenders AND Real Estate Agents deal each week with families who are losing (or lost) everything. What resources are available for these families, and what kind of Grief Counseling do we in the Community need to establish?
I hope there's a conversation about the NEXT Generation of Homebuyers... with everything that's happened, how do we position Real Estate as the Investment vehicle we all grew up with it being?
I'm looking forward to our REBarCamp! I think it will be a great day of MANY conversations! What are some of the topics you would want to cover at Camp?
Next week Activerain is holding it's first Virtual Rain Camp - and with that event, they suggested local Ambassadors organize opportunities for the "Community" to meet IRL (in real life). So far, there are over 42 "Meet Ups," "Tweet ups," "Active Ups," Planned. The one here in the Triangle will be at a Local Winery, which I personally think will be cool.
Being a GIRL, I've obviously been thinking ahead about this opportunity to meet my fellow Rainers - I mean:
HOW AM I GOING TO LOSE 20 POUNDS IN 6 Days!?
So maybe nobody else has this feeling that their profile picture is WAAAAYYYY more flattering than they look IRL. It could just be me... I recently got my haircut, and I know I need a new profile picture - but if I change it NOW - then someone might recognize me when I go the the "Active UP" next week! (Can you hear the "Excuse-itise" creeping in?")
I was thinking last night that I could leave my picture like it is, and THEN I could just tell everybody that I'm NEW to Activerain! Then I woke up - and realized that because I've organized REBarCamp in our area for the last three years, a lot of the people here can already pick me out in a line up! LOL! Maybe the World's Fastest Diet isn't necessary, in order to go...then I started thinking, Oh No!
WHAT AM I GOING TO WEAR?
Since it's a VIRTUAL Rain Camp, it doesn't matter - I can just sit in front of my screen in my PJ's and my puppy, Lucky will curl up by my feet, and we'll be happy all day... but if I go to the ACTIVE UP, then I'll have to figure out what to wear! In reality, I'm bound to have ONE THING that won't look too bad... Right? I'm going to see people I interact with (for the most part) virtually. That means ANYTHING I wear could be new, and they wouldn't know!
Maybe I NEED a SPRAY TAN!
Oh wait, we did that at RETSO (Patty Keller, Debe Maxwell, Elizabeth Cooper Golden, Ann Allen, Connie Harvey, Laurie Davis, Lisa Archer,)! I know it's the end of summer - but I really don't have a great tan, so maybe over this long weekend I'll remember to get in the sun and I can be a little more "glowing,"
MY POINT IS...
There's really NO EXCUSE for NOT going to the local MEET-UP, TWEET-UP, ACTIVE-UP in your area! Yeah, we're all in the business. Yes, we are online looking for the same customer (sorta) - and we're using the same tools (AR)... but this is ACTIVE-FREAKING-RAIN, and THIS group of people is different from any other group, because of the Go Givers. If you are having problems getting your posts seen, if you want to know if Activerain really works, if you have questions about getting more fans on Facebook - or if you want to know how someone else is dealing with Appraisal issues - talk to your Activerain Friends. Come meet us in Raleigh.
(All of the other places Rainers Are Meeting!)
Activerain only has 1000 connections open for Virtual RainCamp. I've got a training room for 30 people in the Triangle - if you want to MEET and "Experience" the Virtual Camp together... LMK. Eleanor Thorne @isellmoney call or txt 919-649-5057 Be There or Be Square! LOL!
With the Economy in a “slump” statistics show more and more families have a single parent. If you are in this situation, and want to purchase a home, there are some very specific details you should know:
FHA will consider part time jobs if you’ve only had that part time job for 18 months – most other underwriting requires you to have a 24 month history of working 2 jobs. (and let me just say, if you are a single parent working 2 jobs – God Bless you! WOW! Talked to a Dad today who is doing that!)
CHILD SUPPORT or Alimony
You have to have evidence that you have received child support, on time, for a year for it to count as income. One of the most common problems we see is when a mom will get a child support check, cash it, and deposit part of the check into their account. In order to have EVIDENCE that you are receiving that income, we need to have bank statements that reflect the entire “check.” We suggest that mom’s deposit the child support check into their account at the same time each month. DITTO with Alimony.
We must have evidence that you will receive Child Support or Alimony for at least 3 full years after the date of closing. Let’s say you receive $300 for each of your 2 children until they are 18. So if you have a child who is 12 and a child who is 16 – we would only count the 12 year old’s portion of your support in qualifying you for the mortgage.
If you PAY Child Support or Alimony… we are only going to count that payment against you (like a car loan) if you have more than 9 months of payments left per your agreement. If you are behind on Child Support or Alimony, and the court is garnishing wages for those payments, we would need 12 months history of that “work out” being made on time. You will need a credit score of at least 620.
Non-Occupying Co-Borrower
You can purchase a home without being married to the other borrower. You could buy the home with your parents (for instance), and they would not have to live in the home. We would take all of their income, all of your qualifying income, all of their debts and all of your debts, and see what the ratios look like. Having someone purchase the home with you helps from an Income Qualifying standpoint. Having someone else purchase with you will not help a single parent with CREDIT issues.
Purchasing a home with someone who is NOT a family member would require that the other person live in the property with you, or you would need at least 25% downpayment. Again, you take all of their income, all of their debts and add it to yours… and their credit needs to be at least as good as no late payments in the last 12 months and at least a 620 credit score. (Don’t have a 620 score yet? Here are 3 tips you can start doing today to help improve your credit score!)
RoomMates
We are seeing a ton of single parents who are living with OTHER single parents. If you HAVE a roommate, or if you are GOING to have a roommate – it is very very difficult for us to count that income. If the roommate is not going on the mortgage loan with you, 99% of the time we can not count that rental income. 
Previous Mortgage
If you and your Ex owned a home, and the mortgage was NOT in your name – there’s nothing to worry about.
If you owned a home, and the mortgage was in BOTH names, and you Quick Claim Deeded the Property over to your Spouse… you are STILL responsible for the mortgage.
If the Separation Agreement says that the SPOUSE is responsible for the mortgage payment -and you were ON the mortgage loan… you are STILL responsible for the mortgage. Unless you have been TAKEN OFF of the mortgage – let’s say the other person refinanced the mortgage and took your name off, or if you sold the home, you are still responsible for the mortgage.
If there was a Short Sale, or Foreclosure on that home, and you were on the mortgage, (even if you did not live there at the time and you the separation agreement said you were not responsible for the mortgage) you could have a problem. It’s not a PERMANENT Problem - and it doesn’t mean you can not buy a home!
HERE’S THE GOOD NEWS!
Less income, in today’s real estate market – buys MORE home. With Interest rates in the 4% range, and home prices coming so far down – a parent who makes $38,000 with no more than $350 a month in debt can purchase a home in Raleigh with 4 bedrooms, a 2 car garage, in a NICE neighborhood for around $200,000. The TOTAL payment, Taxes, Insurance, Mortgage Insurance, Homeowner dues and ALL on one we looked at for a mom yesterday was $1050 a MONTH!
So, if you make $35,000 – and receive $300 a month in child support… you could purchase a nice home, and you could GET a room mate to help you make your payments! NOW really is a great time to purchase a home!
If you are a Single Parent, interested in buying a home, call Steve and Eleanor Thorne at 919-694-5058. Each situation is different. Let us help you with a plan that will mean you can purchase a home! We know the FHA guildelines in NC and we love helping people buy a home for their family!
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I see myself differently than most loan officers in the Cary/Raleigh market. As a rare Cary native, I see myself as an expert on the area, on mortgage industry changes and factors that affect rates!
Who We Are
I am privileged to work with my husband, Steve, in an area we both love. When my family moved to Cary in1968 the population was around 7600. Today, we are the seventh largest metropolitan area in the state with a population of over 125,000! Steve and I met at Cary High School, and we remember when Kildaire Farm Road had a couple of FARMS on it and the Cary Parkway was just a good idea.
I'm second generation "mortgage." As I grew up in a home where everyone spoke about the economy and the mortgage and real estate business... I'm an Economic News Junkie and often write about events that are moving the housing industry and mortgage interest rates. It's important to me that folks understand that I'm not writing about the "gloom" and "ruin" of the mortgage industry - I'm simply looking for lower mortgage interest rates. Typically, bad news in the economy spells good news for mortgage interest rates.
Steve and I were named one of the top Origination Teams in the State (by the NC Association of Mortgage Professionals) and Mortgage Originators Magazine. As entrepreneurs, one of our companies received the coveted Triangle Fast 50 Awards by our Business Journal three years in a row.
Our Commitment
We've been involved in Mortgage Lending since the early 1980's. There is a vision that drives us to do what we do. Simply put, we want to help you create the financial strategy that allows you to live life to the fullest. That requires that together we establish goals, define priorities and determine what's most important to you.
On any given hour of a day, mortgage lending experiences subtle shifts that can create huge forces of change for our customers. We are dedicated to a life of continually educating ourselves in the broad areas of economics, politics and financial planning... and of course we stay on top of the Mortgage Industry News too!
Our Family, Our Community
As active members of the Cary Chamber of Commerce, the YMCA and our church, we have become friends and mentors to local businesses and charities. We've worked hard to raise money and awareness for the "We Build People Campaign" at the YMCA and the American Cancer Society "Relay for Life."
Our unique family dynamic includes a middle school daughter, a son who is at Western Carolina University, a small Japanese Chin (named Lucky) .
I'VE BEEN HACKED!
hi. my name is Savannah Leigh Thorne. i am Steve and Eleanor's daughter, and i feel very strongly that my mom hasn't truly explained our family. so here it is. we are a simi-normal family getting by comfortably in soccer mom territory, also known as the suburbs(not my first choice. but its ok, i still have plenty of fun). we love to do allot of things as a family. my dad and I like to go to the YMCA (conveniently located up the street from us) and play plenty of sports like tennis and swimming and on the occasion even jogging(once again, not my first choice). My older brother is one of my heros, we are 12 years apart and have way too much fun together. my mother often looks at us with a very confused face and asks us why are acting like brothers and sisters.. of course we all start laughing and say "i guess someone didn't get the memo!". speaking of my mom. something you might not know about her is that she is possibly the most creative person i have ever met. she is constantly finding new ways to make something in (or on) our house look amazing. i like to think that's where i get my creativeness from. So anyway. the last thing you should know about our happy little family is that we are very musically inclined. My dad and i will stay up all night playing guitar and piano and singing, of course my mom and brother will join in on the singing too, but its what we do. we may be embarrassing, and we do have our "un-happy" moments. but for the most part were just like ever other typically untypical family. :)
LOVE,
SAVANNAH LEIGH THORNE
Our Company
River Community Bank, NA operates as a mortgage banker and a mortgage broker. We are authorized to handle FHA, NC Housing, VA, USDA... and represent an array of conforming, conventional lenders. We have offices in NC, and Virginia, but we are able to offer mortgage loans in all 50 states. Our team is built upon the same foundation we built our business relationships on. We constantly strive to build a team that embraces and adheres to the values we consider most important... as one of our clients you can be assured that everyone on our team to look out for your best interests!
In most cases we are able to allow our clients to lock into an interest rate and float down if the market improves. We educate our customers on market conditions, and the events that might change those conditions, as we help find the BEST solutions for your situtaton!
We are fortunate to have expertise in helping folks make minor changes to their credit files - as those minor changes to improve a score can make thousands of dollars worth of difference over the life of the loan.
For a more information about Cary check this out or CLICK HERE!
During the last two years, we helped host RE BARCAMP for the Raleigh Area. This is an interactive meeting aimed at Raising The Bar on Social Media Marketing in the Real Estate World! Follow us #REBCRDU
If you are an agent, looking for an interesting way to get more people interacting with you on Social Media, ask us about classes and virtual assistance.
In addition to the information we post on Activerain, you might find what you are looking for at another of our websites! We also post maps, and qualifying information about ALL Government Loans at NC FHA EXPERT. We've met dozens of people this year who are struggling with ways to improve their credit - and maximize their FICO so that they can get the best rates. Because of this, we created a site dedicated to the question, 'HOW TO IMPROVE MY SCORE."
Triangle Area Recognition: Recent "Best Of" Awards
According to the Census Bureau in 2010 Raleigh became one of the "Brainiest" Cities in the Country.
Men's Health
Magazine ranked Raleigh the most politically engaged city in America.
The rankings were based on percentages of active registered voters, ballots counted, percentage of income donated in the current presidential election, campaign spending, votes cast in the 2008 primary and votes cast in recent elections for governor and senate - Men's Health magazine, September 2008
Milken Institute: A Best Performing City
The Raleigh-Cary metropolitan area is ranked number two in the nation's "Top 100Best Performing Cities" in an annual economic performance index released by Milken Institute/Greenstreet Real Estate partners. The annual study ranks
metropolitan areas by how well they are creating and sustaining jobs and Economic growth. The Raleigh-Cary area rose from number 10 in 2007 - September 2008
MSNBC: America's Best City
MSNBC.com ranks Raleigh America's best city! "Raleigh, N.C., it seems, is the best place to be in the U.S. right now. It ranks No. 1 in Forbes' 2008 list and was also top in 2007 - consistent placement among these lists is truly rare. It ranks No. 2 in Kiplinger's list this year. The city is also Fortune Small Business magazine's No. 20 place to live and launch." -- June 2008
Kiplinger's: A Top Urban Area
Kiplinger's Personal Finance names the Triangle the second best urban area in the U.S. It highlighted undeniable date: population growth since 2000 of 19.9 percent; percentage of the work force in the creative class, 36.1 percent; cost of living index, 99 with 100 being the national average; median household income of $56,150; and income growth of 10.3 percent since 200. This ranking dubbed Houston the best in America and Omaha, Neb., the third best. -- July 2008
Forbes: Recession-Proof Local Economy
Forbes magazine ranks the Triangle's economy as fifth on a list of 10 recession-proof local economies. -- May 2008
Best Place For Young Adults
A study conducted by American City Business Journals ranked the Raleigh-Durham
market as the best in the nation for young adults, defined as ages 20 to 34. The
study examined 10 factors, including growth rates of employment and per capita
income, unemployment, percentage of people holding bachelor's degrees and
median rent in the nation's 67 largest metropolitan areas. Austin was ranked
second, Washington, D.C., third. Charlotte placed seventh. -- May 2008
Fortune: A Best Place To Live And Launch
Raleigh's growing tech industry, support of entrepreneurs and the $2.5 billion
renaissance downtown place the Capital City at No. 20 in Fortune's "Best Places to
Live and Launch." -- May 2008
CNN in 2010 and Rachel Ray : Best City For Singles
Chapel Hill Is named the "Best City for Rich Singles in 2010," and Raleigh is named The Best American City for Singles" in Every Day with Rachel Ray
magazine. - - January 2008
Deidre Hughey: I had heard about Eleanor before I met her. What I had heard was that she was dynamic, knowledgable and friendly. That turned out to be true! But they left out what a strategic thinker she is; her amazing, driving desire to help those around her; and, her fierce spirit of community. I don't think there's a task that she can't tackle.
Laura Tahan: Eleanor has always taken great pride and "kid glove" handling of all my clients who have bought homes through me. She understands all the mortgage products that abound and can help anyone choose the program best suited for their personal needs. She is overly cautious that no one overspends on his mortgage. She is extremely creative and full of energy. She is always available at to answer any questions throughout the mortgage process. I have always gotten back raving reviews of her service from my clients after the Closing
Wendy Miller Purser: Eleanor has the best communication skills and always stays a step ahead of the current business of business and in her field. She thinks carefully about her customers and what is best for them many times thinking outside of the box and being intuitive. I highly recommend her.
Pamela St. Peter: I have had the privilige of knowing and working with Eleanor for the past 2 years. We met interestingly enough on an online Real Estate community. She just out of the blue introduced herself AND offered me help. Not very many people do that these days... It was through Eleanor that I have learned about social media/social marketing. The knowledge that she's shared with me has positively affected my real estate business. She tirelessly chaired the past 2 RE BarCamps in RDU. Her knowledge, people skills, and ability to make things happen is par none. I love her title - NEW MEDIA EVANGELIST! It fits her like a glove. However I will add, she's one of the most astute mortgage lenders I've come in contact with too. So whether you need a lender, OR a social media trainer guru.... do yourself a favor. Call her.
Leslie Roth Huffman: Eleanor is a real go-getter! She always busy and involved with something. She give's 100% and is one of the happiest people I know.
Adrienne Deans: Eleanor is amazing. Her vast knowledge of internet marketing ( including expanding your warm market thru social media, SEO and things I have never even heard of..LOL coupled with her experience in the mortgage industry makes her an priceless resource for me in my business-- Thank you Eleanor!
Chris Brown: Eleanor is at the top of her game. In a time where most lenders are dropping like flies, she is continuing to serve her clients in a capacity admired by most
Dora Wallace: Eleanor is so patient with those of us who are technically challenged. She helps us through the maze of social media. Always up on the latest news and gadgets - always figuring out how what is best for her clients.
Tom Burris: A definite asset to the Cary/Raleigh market. I highly recommend Eleanor for all of your mortgage finance needs. Eleanor stays on top of the industry better than most, bringing the best product mix available to her clients!
Tracy Santrock: Eleanors is a class act, Cary native, and a true professional in the mortgage field. I'm especially impressed with he depth of experience in the industry, her attention to detail, and her follow-through with clients! Choose Eleanore & Steve for your next mortgage!
Lindsey Chester: Eleanor works hard to stay abreast of new media and ways to promote both the mortgage and real estate business in Wake and Johnston counties. She is a font of fun ideas that help people learn and network at the same time. Example: ReBar camp for 2 years (now three years!).
Jeff Gilley: One of the best thinkers in the mortgage business, one who motivates and has her A game on everyday.
Karen Barbour: Eleanor has a vast amount of knowledge around soical media and how it can expand your business. She is win win focused and always has your growth, learning and prosperity at heart. I would highly recomend her as a lender and a social media expert.
Sarah Redpath: Eleanor is innovative and a great communicator, a creative visionary and just an all around fun person to be with! She is wonderfully personable and kind. I learn from every conversation I have with Eleanor.
Bonnie Westbrook: Eleanor is a national expert, a real leader in her profession.She has many admirers and followers who respect her knowledge of her industry and her dedication to its highest principles. I would use Eleanor for a mortgage in any situation, without reservation.
Ed Nailor: There is no one out there that is more knowledgable about the mortgage industry, its trends and its inner workings than Eleanor Thorne. I would recommend her highly to anyone seeking mortgage assistance in the Raleigh and Cary area!
Penny Hull, Stanton Homes: Eleanor and Steve Thorne are some of the most knowledgable lenders I've had the pleasure to work with. They take great personal satisfaction in finding the right product for each client, and provide excellent service throughout the entire process. I highly recommend Eleanor to anyone looking for financing or refinancing for a new home or existing home.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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