Higher Loan Amounts Approved through 2011!

President Obama has signed HR 3081, the bill that extends the higher loan amounts for Fannie Mae, Freddie Mac and the Federal Housing Administration’s (FHA) multifamily programs to $729,750. These higher loan amounts will continue through 2011.

I whole-heartedly refer Marty Qualls-Closing August 30, 2010

I've been referring borrowers and Real Estate Agents to Marty Qualls for over 6 years because of his professional demeanor and seniority and expertise in the mortgage industry. 

I have now had the pleasure of working with him on my personal loan for the purchase of a new home.  

I have always been impressed by Marty's ability to communicate effectively throughout the transaction, but especially noticed the difference it makes when you are the actual borrower.

I would whole-heartedly refer Marty Qualls to anyone who needs help with their purchase or refinance mortgage!

Melissa and Justin Miller, Layton, UT:  Loan closing August 30, 2010

Reverse mortgage costs may lessen

The Federal Housing Administration (FHA) isn't talking publicly about it, but the agency may be getting ready to lessen the upfront costs of reverse mortgages for some borrowers. 

The agency also, however, may be reducing the amount seniors can borrow from their homes. 

In a recent conference call with the industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage (HECM=Reverse Mortgage) with almost no upfront mortgage insurance attached.

The FHA also may tinker with the traditional product in a way that increases the overall borrowing costs. 

FHA MIP changes effective October 4th, 2010: 6 things you need to know

FHA MIP Changes Now Official
With the passing of H.R. 5981 and the resulting Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up Front and the Annual premiums. These changes as outlined in Mortgagee Letter 2010-28, are effective for all case numbers assigned on or after October 4th, 2010.

Here are the 6 things you need to know about these changes:

1. The Up Front premium is now 1.0 % for all standard FHA programs (purchase money mortgages, full credit-qualifying refinances, streamline refinances)
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2. The Annual premium is now .90% for LTVs GREATER than 95% on 30 year loans
   
   
3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30 year loans
   
   
4. The Annual premium is now .25% for LTVs GREATER than 90% on 15 year loans
   
   
5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15 year loans
   
   
6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%.

Want some attention?

If you think no one cares you're alive, miss a couple of house payments.

I tried to get it, but I missed this one...

Tiger Woods Takes Out $54.5 Million Mortgage For New Mega-Mansion

Hot on the heels of his highly public divorce, Tiger Woods reportedly took out a $54.5 million dollar mortgage for his new Florida mansion.
The troubled golfer filed the legal docs for the massive mortgage earlier this week, according to TMZ.com, and reportedly listed himself as a “single man”.
The home, located on the exclusive Jupiter Island, will reportedly have a tennis court, oxygen therapy room, many pools and a fitness center. The loan should be repaid by 2016, reports the site.

Reverse Mortgage (HECM) for purchase of a home

For additional information about the HECM for Purchase Program, call me.  Here is an excellent article to give you information to get started...

HECM for Purchase

Beginning on January 1, 2009, seniors became eligible to use a reverse mortgage to purchase a principal residence as part of HUD’s “HECM for Purchase Program.”

Definition (plain English)

HECM reverse mortgages are now available to seniors who would like to buy a new home if:

• The youngest homeowner is age 62 or older
• The purchased home will be primary residence
• The purchased home will be occupied within 60 days of closing
• No mortgage loan other than the HECM can be used to buy the purchased home
• The difference between the purchase price of the home and the HECM proceeds must be paid in cash or from the sale of an existing home

Definition (formal)

HUD’s formal definition of the program, from the HUD Mortgagee Letter on October 10, 2008, is:

The HECM for Purchase is a real estate purchase where title to the property is transferred to the HECM mortgagor, which the mortgagor will occupy as a principal residence, and, at the time of closing, the HECM first and second liens will be the only liens against the property. HECM mortgagors must occupy the property within 60 days from the date of closing. Lenders are required to ensure all outstanding or unpaid obligations incurred by the prospective mortgagor, in connection with the HECM transaction, are satisfied at closing.

FHA Refinance Update: Changing Guidelines on September 7, 2010

FHA Eliminates Unlimited CLTVs for Refinance Transactions

Call me for additional details and for help with your FHA refinance.

This update from Mortgagee Letter 2010-24 contains changes to the new maximum CLTV limits for refinance transactions, which will be effective for case numbers assigned on or after September 7, 2010.

The combined amount of the FHA-insured first mortgage and any subordinate lien may not exceed the applicable FHA LTV AND the geographical maximum mortgage amount (does not apply to streamline refinance transactions).

Here are the 4 Maximum CLTVs for Refinance Transactions that you need to know about:

1. Rate and Term (or No Cash Out) Refinances = 97.75%
2. Refinances for Borrowers in Negative Equity Positions* = 115%
3. FHA-to-FHA Streamline Refinances With or Without Appraisals = 125%
4. Cash-out Refinances = 85%

* This refinance option is only available through December 31, 2012.

Can rates remain low? 2nd warning in 10 days...

As we continue to enjoy lowest rates in our lifetimes, we have received two warnings this past two weeks, the of which Blog posted on 8/13 in which Kansas City Fed President Hoenig said that ZERO Percent interest rates (at the Fed discount window) is a dangerous gamble, and using monetary policy as a "cure-all will will lead to a recession and unemployment in a few short years.

Today's warning: Raghuram Rajan, the former chief economist for the International Monetary Fund, say the Fed should raise the Fed Funds Rate by 200bp. Rajan's words are not being taken lightly, because back in 2005 he correctly warned central bankers of a potential financial crisis should banks lose confidence in one another.

If you are purchasing or refinancing, call me for your options for mortgage financing.

Marty Qualls showed exemplary professionalism-Jim McGowen Loan Closing-May 27, 2010

Marty Qualls showed exemplary professionalism.  He made the process of obtaining a mortgage painless and easy to understand even when the bank tried to make things difficult.  

His experience is easy to recognize through his understanding of the mortgage industry and I would definitely recommend him to anyone looking for a mortgage.

 - Jim

Refinance to a 15 or 20 year term

Mortgage rates for 15 and 20 year refinancing are the bargain in the market place!

Nationally in July and so far this month, 1/3 of all refinances are 15 and 20 year loans.  Shorter term loans, lower interest rates, less interest paid over time, approaching retirement for many homeowners with a mortgage, has spiked demand for these loans. 

Call me to discuss your refinance or purchase mortgage options.