Pete Cannon

30 year fixed conventional and FHA mortgage rates have improved the last two days. Underwriting times are still longer than recent memory, however refinance business exploded this week. Especially popular is the FHA streamline refinance without an appraisal. For customers who are current on an FHA loan a drop in payment and rate is possible without the usual piles of paperwork and appraisal. A mortgage insurance premium credit is applied from the old FHA loan to the new FHA loan if the previously loan was originated less than three years ago. Being able to close without an appraisal is a great program for many local markets due to slowed appreciation, depreciation or a short time in the home.

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April 15th is coming. Can you afford to set aside $5000 to put in an IRA? Or $10,000 for a married couple? Have you bought a home and can take advantage of the old $7500 tax credit or perhaps the new $8000 home buyer credit? Did you refinance and pay points which may be tax deductible? Have you made an appointment with your accountant? Do you have your mortgage interest statement handy and property tax bill? It is the time of year to start the process if you have not already filed. Find a good accountant if you do not have one and see if they can save you money. The best part about using an accountant to do your taxes is you know where to find them if you have a question in the off season. The trouble with large national tax companies such as H and R Block is where is the office in the summer when the IRS comes calling? Hire local.

We are offering a free home buyer seminar on Tuesday, March 3rd at our Milwaukee office. You will learn how to understand your credit report, how to get approved for a mortgage and how to work with Real Estate agents. To make an appointment for this free one hour seminar contact Loan Officer Pete Cannon at Great Lakes Mortgage at 414-416-9194 and be ready for the Spring buyers market

A 5% FHA mortgage was available in Wisconsin Wednesday for borrowers who can prove income and have at least 3% equity in their home. This is on a 30 year fixed mortgage. This rate has surfaced off and on lately and no one knows how long it will be available. Many times the rate lock window is very brief and the rates spike up again within hours. APR 5.09%

Naturally not everyone qualifies but FHA underwriting is more lenient than a conventional mortgage.

If your credit is not as good as you would like now is the time to improve it. The higher your credit scores the more options you will have when you need to borrow money whether it is for a car, a house or a credit card. Striving to achieve a credit score over 700 should be everyone's goal. It is possible. Try to pay down any balances you currently have on your credit cards. Try to have no more than a few cards to avoid temptation. Always strive to get your bills paid a few days before the due dates. If you have some credit you opened a long time ago keep it open because it will show a history. Older accounts obviously show more history than the Best Buy card you opened last month. Don't open more credit than you need. Watch your medical bills and try to avoid any bill going to collection. Strive to establish an automatic savings plan whether it is through you employers 410k plan or an IRA or at your bank or credit union. If you are in the market for a new home try to save at least 3.5% for a down payment.