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Private Mortgage Insurance rates have been climbing and we have received announcements that the factors for Monthly PMI (the most common form of PMI) have gone up.

Why? Much like any insurance company, they do not want to pay out and since they have been paying out more in the past couple of years do to foreclosures, they have raised rates.

What does this mean to you? Increased payments of course. here are a few examples for a 200,000 mortgage with 3%, 5%, 10% and 15% down:
3% down (not as common) was $138.33/month NOW $175.00/month
5% down WAS, $131.67 per month. It is NOW $156.67/month
10% down Was $86.67 per month. It is NOW $103.33/month
15% down Was $55.00 per month. It is NOW $63.33/month
As you can see the difference is not as bad as you increase the down payment. Historically 15% down loans never go bad so there is less risk, while the lower the down payment the higher the risk, thus higher premiums.

Now more than ever, FHA is more likely to be the way for you to buy a home when mortgage insurance is required (Even with the new changes in FHA MIP )

In the past I would advise that less than 10% down FHA would be the best way to go, now it is something to consider for any down payment lower than 20%.

A comparison needs to be done to be sure the right program is picked for YOU. Keep in mind that Conventional loans have interest rate add ons below a 720 credit score.... FHA does not have Interest Rate Add ons for loans at all. There are some lenders that will put their own add ons for loans they feel are risky, (sub 620 credit score is common for add ons).

FOR MORE INFO , PLEASE VISIT best realty ny

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Now more than ever you need a Loan Officer that understands your needs and will review your scenario to pick the best option for YOU! Call me if I can be of assistance.

Fabio Fornaro
Mortgage Banker
516-353-5501

For the past week or two, clients and business partners have been asking me if they are still able to get a loan. These questions have been coming from clients who are in the market to buy homes and from realtors that are showing homes.

Every day, a new story seems to come out about how our financial system is on the brink of destruction and we are seeing bank after bank either closing down or being taken over.

Yes, these are frightening facts that do paint a very bleak picture but most, if not all of it, has to do with the easy credit lending standards that we had over the past few years. The truth of the matter is that those 100% No Income Check Loans are a thing of the past BUT right now, banks are willing to lend on loans that make sense. FHA, in my opinion is the best mortgage to get these days and since FHA loans are insured by the government, lenders are willing to fund these loans with full faith and security.

YES,YOU CAN get a mortgage today, contrary to what you may hear. Mortgage rates are still at very low levels and my assumption is that they will only get lower.

The main problem we are having within the financial industry now is that Banks are not lending to banks and Corporate credit lines are being restricted or drying up all together. These are the problems that the bail out is dealing with. If businesses do not have credit lines they will not survive. American business runs on credit. Therefore, liquidity and faith in the banking system needs to be restored.

Last month Uncle Sam took over Fannie and Freddie and FHA is raising there loan limits. This was good news for the mortgage market since a major source of residential money is now secure. The FDIC has done a wonderful job of curing the failing banks and quickly shifting the nations deposits to stronger institutions with no more than a hic-up. The sky did not fall, and it probably will not fall.

Real Estate has always been a great long term investment. The economy has always had its ups and downs and Real Estate has always rebounded.
So, don't worry. There is money to lend, and at reasonable rates with very good terms.

If you have any questions, please don't hesitate to visit best realty ny

don't forget to ask as about our real estate rebate ny

Fabio Fornaro
Mortgage Banker
Mid-Island Mortgage Corp. | 900 Merchants Concourse | Suite 112 | Westbury | NY | 11590
1888-411-fha0

1-888-411-3420

Many people believe that when the Federal Reserve lowers their Fed Funds Rate .5%, that the 30 year mortgage rate will be .5% lower as well. For instance, before the fed came out and lowered the Fed Funds rate this week, a client of mine locked his rate on a 30 year mortgage at 6%. The news comes out about the Fed lowering their rate a .5% and he immediately calls me to see if we can cancel that lock request because he wants to get 5.5% instead.

The truth is that although the Fed lowering the Fed Funds rate always makes the headlines, everyone in the business should know that any direct correlation between overnight rates and 30-yr mortgage rates is very little (especially in the last two business days) Eventually, yes, they tend to move in the same direction, but not right now. Check out this chart of the Federal Funds vs. Prime Rate & Mortgage rates.



The Stock Market has been falling off a click but mortgage rates haven't gone lower..why?
As you may or may not know, when the stock market goes lower, mortgage rates usually get better. That's because as investors sell their stock, they usually put that money into a safe place and the safest place perceived by many investors is in the U.S. treasury market. As the demand for the U.S. treasuries goes up, the yield that the government has to pay on those bonds goes lower and since the yields on 10-year and 30-year Treasury securities are typically used to set long-term mortgage rates, we see mortgage rates go lower as well.

Well as you've probably noted, the stock market has been falling of a cliff lately and mortgage rates have actually gone up! In the past 5 days, the Dow has dropped from approx 10,500 to as low as 8000. This would lead you to believe that all of the money from selling stocks would be invested in Treasury securities and that the yield on the 10 year treasury would go lower. Instead, in the same 5 day period, the yield went from as low as 3.4% to 3.9% which is a HUGE jump in such a short period of time.

Unfortunately, it seems that the traditional flight to quality that we are used to seeing has disappeared and it appears that investors are parking money on the sidelines until the markets stabilize.

Fabio Fornaro
Mortgage Banker
516-353-5501

1% cash Back to all our buyers

Friday, October 10, 2008, Freddie Mac released a 35 minute webinar on an introduction to short sales to

the National Association of Realtors. It is designed to educate real estate professionals on the nature and

nuances of a successful short sale. It also tells you why short sales are becoming an increasingly

important tool for the lender's to use to minimize their losses on defaulted loans. Pay attention to their

request that realtors send sellers to HUD approved counseling BEFORE taking the short sale listing. And

they don't say it specifically, but they want any submission to the lender to include a qualified buyer's

offer. Without a buyer's offer, the entire package is placed on hold. YOU MUST ALLOW THE WEBEX CLIENT COMMUNICATIONS IN ORDER TO VIEW THE VIDEO

for more information on shortsales

ALSO , THERE IS MORE INFORMATION IN REALTOR.ORG.

IF YOU ARE SERIOUS ABOUT REAL ESTATE YOU MUST SEE THE VIDEO.

ANY QUESTIONS, PLEASE DON'T HESITATE TO CONTACT NEW YORK'S BEST REAL ESTATE COMPANY

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