Articles Published in: June 2015

June 11, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Lower After Upward Momentum

European economic news has been fueling an upward trend in mortgage loan rates, pushing numbers higher than we’ve seen all year–the highest numbers of 2015 may still be lower than in years past, but the upward trajectory of mortgage loan rates in general has made some wonder where it might end. Did today’s market activity provide an “out” for rates to at least take a breather? On Thursday, rates did stop their upward climb (at least for one day) and pushed back down. 30-year fixed rate conventional mortgage rates had been creeping toward 4.25% as the predominant best-execution rate (out of a range between 4.125% and 4.25%). After today’s downturn the best execution rates are closer to 4.125%. Should a downward trend happen–lower interest rates over a period of days–we | more...

What happens to my FHA loan in a natural disaster?

June 11, 2015

FHA Refinance Loan Facts

By Joe Wallace

Are you thinking about refinancing a home loan? There are some facts about FHA refinancing loans you should know before you start shopping around for a lender. And that’s an activity more than one borrower doesn’t think about when first considering a refinance. Did you know you don’t have to stay with your original financial institution in order to refinance a mortgage? That’s our first tip about home loan refinancing: Shop Around For A Lender Your current lender may or may not offer you the most competitive refinance loan interest rates and/or terms. Do you know what other rates are offered elsewhere? You do not have to use the original lender to refinance a home loan with an FHA mortgage. You will need to find a participating FHA lender, but | more...

June 11, 2015

FHA Policy On Cancelling Monthly Mortgage Insurance Premiums

By Joe Wallace

One commonly asked question about FHA loans involves when and how a borrower can stop paying FHA Monthly Mortgage Insurance Premiums. The information we’re discussing here does not apply to Private Mortgage Insurance, which something different than FHA Mortgage Insurance Premiums. Since we’ve mentioned Private Mortgage Insurance, borrowers who have it, (called PMI for short) should know the following as published on the government website, ConsumerFinance.gov: “The Homeowners Protection Act gives you the right to request that your lender cancel PMI when you have reached the date when the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. This date should have been given to you in writing on a PMI disclosure form when you received your mortgage. If you | more...

June 10, 2015

HUD Settlement In North Miami Beach Condo Housing Discrimination Case

By Joe Wallace

Housing discrimination is a violation of federal law. Sometimes that discrimination happens at the time a borrower applies for a home loan, other times it happens when the house hunter is looking for a home. But what about situations where a borrower has applied for a home loan, FHA or otherwise, closes the deal and moves in, only to find discrimination waiting for them once they are legally occupying the property? Such a case recently made headlines in North Miami Beach. The HUD official site has announced a settlement in a housing discrimination case in Florida. According to the HUDNo. 15-069, “The U.S. Department of Housing and Urban Development announced today an agreement with a North Miami Beach condominium association settling allegations its board president harassed and made discriminatory remarks | more...

June 10, 2015

FHA Mortgage Loan Interest Rate Trends: Slightly Lower, Then Higher

By Joe Wallace

Last Friday, mortgage rates hit their highest levels of the year in the wake of strong economic data released that day. Rates for 30-year fixed rate conventional mortgages broke the 4% zone and while there was some improvement on Monday, it wasn’t enough to push best execution rates out of the low fours and back into the upper three percent range. On Tuesday rates moved back up, but as our sources are reporting this happened without the usual reasons you might see to spur that move–there was no significant economic data or breaking news that may have acted as a catalyst for investor behavior that pushed rates higher, and so we sit in what many are describing as an unpredictable mortgage loan rate environment that could go in either direction | more...

June 9, 2015

FHA Loan Rules For Down Payments

By Joe Wallace

FHA home loans come with a maximum financing limit–a borrower is required to pay a certain percentage up front as a down payment. There is no such thing as a zero-downpayment FHA home loan, but the amount of the minimum is much lower than conventional loans in typical cases. FHA loan rules specify a minimum 3.5% down payment, but in some cases that down payment may be higher depending on circumstances. What kind of circumstances? One is a situation where the borrower’s FICO scores or other financial qualifications are borderline. FHA minimum FICO standards for maximum financing and to be eligible for the 3.5% down payment start at 580 and above. Your lender may actually have higher FICO requirements than 580 and that is permitted under FHA loan rules. Borrowers | more...

June 9, 2015

Why Refinance Your Home Loan?

By Joe Wallace

There are lots of articles and blog posts about refinancing your home loan, but many of these are technical; few of them discuss the reasons it might be a good move to consider applying for an FHA refinance loan. Consider an article written last year by a staff member at Marketwatch.com titled, “Half Of Americans Cant Afford Their House”, which discusses a serious issue among some home owners. According to the article approximately 15 percent of home owners in the United States were said to be in housing markets where the monthly mortgage loan payment ate up more than 30 percent of monthly income. 30 percent is, the article states, the maximum for rent or mortgage loan payments in terms of affordability. Exceeding that 30 percent is not recommended. Home | more...

June 8, 2015

Things To Do Before Applying For Your FHA Home Loan

By Joe Wallace

If you are in the planning stages of your home buying journey, there are some important milestones you should plan for–things that are crucial to think about before you start filling out your home loan application. One milestone is deciding how much home you can afford to buy. This seems like an obvious move for many reasons, but the amount of your down payment is one factor you shouldn’t overlook when using a home loan calculator or other tools to figure out how much you can spend. When you add up the numbers and arrive at a target home loan amount that’s appropriate to your income level and ability to afford (based on both the amount of the projected mortgage payments AND that amount added in with your current financial | more...

June 8, 2015

FHA Appraisals and Loan Approval

By Joe Wallace

When you are ready to commit to buying a home with an FHA mortgage, one of the big steps toward making that happen is the appraisal process. Borrowers sometimes confuse FHA appraisals with a home inspection, but the appraisal is not a complete, top-to-bottom review of the home. A property may be appraised and approved for the loan, but still contain issues unknown to the borrower. That is why a home inspection is so important. How does the appraisal process work? An assigned FHA approved appraiser comes to the home and personally walks through it, noting any obvious defects in workmanship, code compliance issues, and other things that could require attention as a condition of FHA loan approval. Sometimes there are no issues and the home “passes” the FHA appraisal | more...

June 6, 2015

FHA Mortgage Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates have been trending higher as of late, partially due to overseas economic headlines such as the Quantitative Easing situation with the European Central Bank, but also because of local economic data–case in point, the much-anticipated jobs report that came out on Friday. The Employment Situation Report showed positive data, which can and often does have a negative effect on mortgage loan interest rates. This may seem like a contradiction in the eyes of those not used to watching the markets, but a good thing to keep in mind about mortgage loan interest rates is that when there is bad economic news, mortgage loan rates can and often do improve. When there is positive news the opposite can and often does apply. Investor reaction to Friday’s economic | more...