Tom Jarzynka

Jumbo Loans on Mercer Island | GUILD MORTGAGE

Here at Guild we are one of the best sources for your Jumbo loan purchase and refinance financing. Our office is located just up from Mercer Island in Bellevue, WA. Guild provides the following advantages for individual(s) looking for Jumbo financing (e.g. loans over 567k):

• We have a variety of Jumbo investors that we originate, underwrite and fund loans for through our in-house channels here at Guild.

• Since we have different investors for Jumbo loans, we can then offer a variety of Jumbo products to choose from to help you find the best product fit and best rate available for your situation.

In today’s residential mortgage market, especially with Jumbo loans which can have funky nuances associated with the product guidelines, it is important to have a direct line of communication to the underwriter to set expectations up front of what is required in order complete the financing process succcessfully, on time, and with the least amount of hassle as possible.

Please contact me anytime to discuss your Jumbo Loans on Mercer Island options; to understand what Guild can offer you for your financing scenario.

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Rehab Loans Make Lending “Greener” |GUILD MORTGAGE

When you think of green businesses, the mortgage business probably isn’t the first to come to mind. It’s more likely that a huge pile of paper comes to mind. These days there is a disclosure, another piece of paper, for every imaginable scenario, which results in a mind numbing number of pieces of paper that are required for every transaction. While the mortgage industry has taken advantage of many technologies that have reduced the use of paper, until attorneys come up with a widely accepted method for electronic signings, we will be a paper heavy industry.

All the paper usage doesn’t, however, mean nobody in the mortgage business is “green” minded. Did you know there are some very cool mortgages being offered that can help to pay for making houses more energy efficient… greener?

The first is the Energy Efficient Mortgage (EEM) product offered by FHA. This is a mortgage product that acts very much like any other FHA loan. You save up for a down payment as little as 3.5%, fit into FHA’s guidelines, which are the loosest in the business right now, and then negotiate to purchase a house at a particular price. The EEM allows you to add to the loan balance a budget for added energy efficiency items to the house. This amount can be above and beyond the total value of the house. Examples of things that can be included in the budget are new energy efficient appliances (including washer, dryer and refrigerator), dual pane windows, insulation, weather stripping, etc. Once a new home owner completes the purchase transaction a contractor will immediately install all budgeted items even before moving in. The EEM is excellent when there are relatively minor changes to be made to the home.

When you are interested in purchasing a house that has a house that might need a significant amount of work, a Rehab Loan could be the right product. These loans allow a budget for all kinds of repairs to a house, not just energy efficient items. The big difference on rehab loans is they allow for a much larger budget for repairs. With a rehab loan you could do everything the EEM allows, but you could also finance adding solar panels to a house, or you could add a tankless hot water heater, for example, both items that are very energy efficient. Just like the EEM, the qualifying and underwriting process for the rehab loan is very similar to any other loan and most people that will qualify for a rehab loan will also qualify for a rehab loan.

The process of getting a mortgage might not be the greenest process on the planet, but that doesn’t mean the mortgage industry is completely ignoring the need to be green. By utilizing either of these mortgage products, a new home owner will be making green upgrades to their house that will save a ton of money on energy bills and help make a difference for our planet.

FHA Increasing Mortgage Insurance Fees | Seattle Mortgage Guy

WASHINGTON – As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.

These premium changes will impact new loans insured by FHA beginning in April and June of 2012. Details will soon be published in a Mortgagee Letter to FHA-approved lenders. (Please see: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee )

“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market,” said Galante. “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.

FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month. These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan. Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.

Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013.

Read the entire press release at: http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2012/HUDNo.12-037

For FHA technical support on this or any other FHA issue, please contact the FHA Resource Center at: www.hud.gov/answers You can also get email technical support at: answers@hud.gov

Market Update | Guild Mortgage

Our benchmark bond market for mortgage interest rates began worsening at the end of last week (2/17) losing a significant amount of basis points (which equates to around .125%-.25% worse in rates depending on the specific product). We saw some improvement this week to eat into about half of what we lost. I am continuing to float my existing loans that are 7 days or more out from closing. The economic calendar for next week will have plenty of potential market moving reports.

Please let me know if you would like to have a regular Friday interest market update.