Listed below is a news release about the upcoming changes. The mortgagee letter is not yet out – so there might be more changes – but here are the highlights:
· Upfront MIP is increasing by ¾% to 1.75% on all loans
· Monthly MIP will now be split into 2 categories – with $625,500 being the benchmark for the change
o .10% for loans at or below $625,500
o .35% for loans at or above $625,501
The changes will be effective on and after 4/1/12 – with another update occurring on 6/1/12. I believe the 2nd June change will be limited to the loans over $625,500 but until we see the mortgagee letter I don’t have specifics. USUALLY the changes are tied to the case number issuance date, but this news article says “insured”. Therefore it is possible it might impact pipeline loans.
As soon as more information is received I will advise everyone. Again, all I have right now is the news release and not the actual mortgagee letter.
The real question, what will it cost?
Based on an FHA 30yr Fixed $200,000 loan amount at 4%:
So that would be an additional $23.82/month
In comparison a USDA loan of $200,000:
This is important information to share with your buyers!
Have a great week!
Mortgage Loan Originator
NMLS ID# 248937
http://robertrauf.remn.com/Default.aspx or my blog: http://activerain.com/blogs/rrauf
(732)557-6920 x102
Since 1987 I have been helping my clients fulfill their dream of home ownership!
Real Estate Mortgage Network Inc.
Real Estate Mortgage Network, Inc. is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgages in Ocean County NJ, Mortgages in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731
FNMA 30-yr 3.5 closed the 2011 near the highest price of the year. For the last week of the year, Mortgage Backed Security prices improved 29/32. Incredibly, Friday's 3.5% MBS commanded a higher price than a 4.5% MBS did at the end of 2010. This price improvement reflects an environment with low inflation and strong demand, with the demand coming from the Fed and a global investor shift into safer assets.
The chart above doesn't have the last quarter of the year, which will be a touch lower.
Rates are near all times low right now, and while I don't anticipate a big swing up in the near term, it is a pretty safe bet that we will see rates higher in the near future, and we probably will not see any significant drop from here.
While investors sought the safety of US government guaranteed assets like Treasury bonds and MBS, US stocks were not hurt, with the S&P up slightly and the Dow up almost 6% for 2011.
Mortgage Loan Originator
NMLS ID# 248937
http://robertrauf.remn.com/Default.aspx or my blog: http://activerain.com/blogs/rrauf
(732)557-6920 x102
Since 1987 I have been helping my clients fulfill their dream of home ownership!
Real Estate Mortgage Network Inc.
Real Estate Mortgage Network, Inc. is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgages in Ocean County NJ, Mortgages in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731
Yesterday FNMA announced the changes to the HARP program which are designed to help underwater homeowners refinance their mortgages into today's lower rates. In typical government fashion, they also announced that the changes will not take place until March 2012!!! (We still are awaiting word from Freddie.)
Here are a few of the highlights
There still are likely to be some overlays to the above, but it appears to be a step in the right direction and it certainly has the potential to help many home owners.
More details to come as they become available...
As always, give me a call with any questions.
Mortgage Loan Originator
NMLS ID# 248937
www.RobertRaufHomeLoans.com or my blog: http://activerain.com/blogs/rrauf
(732)557-6920 x102
Since 1987 I have been helping my clients fulfill their dream of home ownership!
Real Estate Mortgage Network Inc.
Real Estate Mortgage Network, Inc. is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgages in Ocean County NJ, Mortgages in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731
Don't forget to Fall Back!
Remember to move your clocks back one hour on Sunday, November 6th at 2:00 a.m.
Have a great week!
Mortgage Loan Originator
NMLS ID# 248937
www.RobertRaufHomeLoans.com or my blog: http://activerain.com/blogs/rrauf
(732)557-6920 x102
Since 1987 I have been helping my clients fulfill their dream of home ownership!
Real Estate Mortgage Network Inc.
Real Estate Mortgage Network, Inc. is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgages in Ocean County NJ, Mortgages in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731
Possible Short Sale Outcomes
Unlike Loan Modifications, Short Sales stand a much better chance of getting approved. However, there are great variations in short sale approval letters and how the lender/investor will deal with the deficiency. Below are some possible short sale outcomes regarding deficiencies:
· The lender “forgives” the short-fall between what is owed and what the received. This is also called a full satisfaction. This is our objective in every short sale and is often achieved with first mortgages. In this situation, the seller will get a IRS 1099 for the forgiven amount (See Mortgage Debt Relief Act of 2007). After closing, the seller is free of the debt and all future obligations.
· The lender approves the short sale but as a “lien release” only. In other words, they still expect (albeit loosely) repayment and have decided not to write the deficiency off. They may contact lender after closing to discuss possible repayment plans. This is more likely with 2nd liens and no IRS 1099 is issued.
· Lender releases or forgives debt, but only after seller agrees to a promissory note. These notes are negotiable and usually with very favorable terms to the seller (i.e. 10 years repayment for $10,000 with zero interest). The lender is only writing off part of the deficiency balance and seller repays unsecured note back after closing.
· Lender releases or forgives debt after a “cash contribution” by the seller. Cash contributions range in amounts but are typically between $2000-$15000 depending on the homeowner’s situation.
Our Short on Sale Department has spoken with managers at most large banks (i.e. BOA, Wells, and Chase) and they usually do not pursue deficiency repayments on loans where the balance is not forgiven. In most cases, they are simply reserving the “right” to and are seldom interested in pursuing costly legal action against a typical seller whose deficiency of $20,000-$100,000. They know the chances of repayment are slim and they do have bigger issues to handle.
Our goal is always to achieve the best possible outcome for the seller. If full forgiveness is not possible, we will discuss all alternatives with the seller and the agent. If necessary, we may ask the seller to seek an attorney for review of the situation.
Real Estate Mortgage Network not only offers the tools to help your buyers finance their dream home, but we also offer help in negotiating Short Sales for your seller to help keep your deals flowing as smoothly as possible. Feel free to give me a call with any questions.
Have a great week!
Mortgage Loan Originator
NMLS ID# 248937
www.RobertRaufHomeLoans.com or my blog: http://activerain.com/blogs/rrauf
(732)557-6920 x102
Since 1987 I have been helping my clients fulfill their dream of home ownership!
Real Estate Mortgage Network Inc.
Real Estate Mortgage Network, Inc. is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgages in Ocean County NJ, Mortgages in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731
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I am a Mortgage Loan Originator (NMLS #248937) who has been lending Mostly in the Ocean and Monmouth county NJ area since 1987. Please feel free to contact me with any mortgage question
Robert Rauf is an Active member of the Ocean County Board of Realtors and currently is active on several Committees
I have always loved FHA loans, but most of all I enjoy sifting through the Mortgage Minutiae and picking out the appropriate program for each individual borrower. Every borrower is different and deserves the individual attention to be sure they not only get the right mortgage program for their needs, but the most important aspect is that borrower fully understands their loan and can comfortably put their head on the pillow at night and fall asleep with out worrying about their mortgage
REMN
Real Estate Mortgage Network
Real Estate Mortgage Network is located at: 16 Madison Avenue Building 2-Suite 2D Toms River, NJ 08753 NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
Real Estate Mortgage Network and Robert Rauf have both been helping buyer finance their homes for over 20 years. We are dedicated to making sure our clients have the right mortgage to fit their individual needs so they will be financially comfortable in their homes for years to come. Please feel free to give Robert Rauf a call to make sure you will be financially comfortable in your 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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