Articles in Category: Fixed Rate Mortgage

December 12, 2019

5 Home Loan Interest Rate Facts You Should Know

The Federal Reserve announced interest rates would not change; the week of December 9 was one investors would pay a great deal of attention to. The interest rate was left untouched on December 11, 2019; there were three adjustments in 2019. FHA Home Loan Interest Rate Facts: The Fed Does Not Directly Set Mortgage Loan Rates The interest rate cut by the Fed this week did not directly adjust mortgage loan rates, but investor reaction to the announcement definitely plays a part in the daily ebb and flow of rates. But what the Fed has done in 2019 does not “fix” home loan rates at their current low levels. What rules the daily rate changes is investor activity based on current events, economic data, and things like the Fed rate | more...

December 9, 2019

Applying For A Home Loan In 2020

By Joe Wallace

Are you thinking about buying or building a home in 2020? Prepare for your dream home early and get ready to start the path to homeownership in the new year. Save Early What kind of expenses should you anticipate when saving for your home loan? It’s not just the down payment you’ll need to save for–here is a list of common home loan expenses: Title insurance Appraisal costs Pest inspection fees Origination fees Discount points Credit report fee Survey fee Property taxes Mold abatement (where applicable) Document prep Compliance inspections You will also want to save early for unexpected costs including contingencies where the appraised value of the property is lower than the asking price. Some borrowers like the home so much they are willing to pay the difference in | more...

December 6, 2019

Why Did My Mortgage Payment Increase?

By Bruce Reichstein

There may be circumstances where you find your mortgage payment has increased. There are several reasons why a mortgage payment might increase; regardless of which issue may be affecting your loan it’s crucial to address it right away. Mortgage Payment Increases Due To Interest Rate Adjustment If you have an FHA Adjustable Rate Mortgage, your mortgage payment increases when there is a scheduled interest rate adjustment on the mortgage. The government watchdog agency known as CFPB, the Consumer Financial Protection Bureau, advises, “Some homeowners believe that they have a fixed-rate mortgage loan when their loan actually includes an adjustable-rate or some other feature that can cause their interest rate and payment to change.” Changes To Your Property Taxes If you notice an increase in your mortgage payment, check your monthly | more...

November 12, 2019

FHA Home Loan Assumptions

By Bruce Reichstein

Sometimes a homeowner decides they don’t want a particular home any longer. Some choose to sell, others choose to have their home loan assumed by another person, which is not quite the same as selling the home but has the same intended result–the new owner becomes financially responsible for the mortgage and the property. When you want to have your FHA home loan assumed, you’re required to get the participation of the lender in most cases. There are rules in HUD 4000.1 that govern loan assumptions, they begin with the agency’s definition of the term: “Assumption refers to the transfer of an existing mortgage obligation from an existing Borrower to the assuming Borrower.” Because of certain rule changes that affected the FHA loan assumption rules, HUD 4000.1 has a different | more...

November 11, 2019

Happy Veterans Day 2019

By Joe Wallace

Happy Veterans Day! Many banks will be closed to observe this federal holiday, bond markets are closed, and we pause in our usual routine of answering questions about FHA home loans to honor our veterans. Thank a veteran for her service, and remember the sacrifices all our troops have made no matter where in the world they may be stationed. To all current and former members of the U.S. military, THANK YOU for your service! Our regular posting schedule resumes tomorrow.

November 5, 2019

FHA Loan Closing Cost Rules

By Joe Wallace

FHA home loan closing cost rules affect your home loan no matter if you are buying a mobile home with an FHA loan or having a house built on your own land using an FHA One-Time Close construction loan. Closing cost rules for FHA home loans have two “lanes” (our term, not a bit of industry jargon) where the rules are applied–one is the rules from the FHA Single-Family Lender’s Handbook (HUD 4000.1) and the other are the lender’s own standards and requirements. FHA loan rules and lender standards will both apply. FHA loan closing cost rules begin with the understanding that your down payment and your closing costs are two separate expenses. Your closing costs cannot be used as part of your down payment. FHA loan rules in HUD | more...

November 4, 2019

FHA Loan Down Payment Rules

By Joe Wallace

Do you know what the rules are for down payments according to the FHA Lender’s Handbook? HUD 4000.1 states that the minimum required down payment allowed for FHA mortgages is 3.5% of the adjusted value of the home. The borrower must pay this independently of any other closing costs associated with the loan. The seller, lender, or any other party with a stake in the outcome of the transaction cannot provide down payment funds to the borrower. Sellers are permitted to contribute toward closing costs, but not the down payment. The down payment is part of the borrower’s cash requirement to close the loan. The lender is required to verify the sourcing of all down payment funds (including gift funds from other people) to insure the money does not come | more...

October 15, 2019

What Is Ahead For Home Loan Interest Rates?

By Joe Wallace

Last week, mortgage loan interest rates moved higher, reported as a significant increase after hitting lows not seen in some time. At one point in the earliest of October rate changes, mortgage rates went to multi-year lows, taking FHA mortgage loan interest rates below 3.50% for the most well-qualified borrowers. So what is ahead for FHA home loan interest rates? At the time of this writing, FHA rates for a 30-year fixed rate forward mortgage loan (for the most well-qualified applicants) are somewhere at or near 3.375%. Will this low-rate trend last? Is now the right time to buy or refinance a home? The answer depends on plenty of variables including your financial goals for the home–do you plan to stay in it long term or do you know you | more...

Five FHA Home Loan Questions To Ask Your Lender

September 26, 2019

Rising Equity And FHA Refinance Loans

By Joe Wallace

With reports of rising equity in many housing markets over the last year, it makes sense for those with mortgages to consider an FHA refinance loan. If your financial goals include being able to pull the value of your home out in cash with an FHA refi, there are options to consider alongside the cash out refi loan that could make the difference when deciding which refinance loan is right for your needs. A CoreLogic Homeowner Equity Report reveals that in the last year, home equity in some markets went up nearly five percent since the second quarter of 2018. How much is that increase worth to the home owner? Nearly $5 thousand. Overall, the amount of money homes are worth increased nationwide in the last 12 calendar months to | more...

September 12, 2019

Homes You Can And Cannot Buy With An FHA Mortgage

By Joe Wallace

What kinds of homes can you purchase using an FHA mortgage loan? It does not matter whether you are a first-time home buyer or an experienced borrower, the FHA mortgage option (as well as FHA refinance loan options) are open to any financially-qualified borrower. Homes You Can Buy With An FHA Home Loan: Condominiums The FHA condo loan program was revised in 2019 to include the approval of qualifying individual condo units in projects not on the FHA approved list. That means that it is easier to find a purchase a condo unit with an FHA mortgage. Some believe condos to be closer to the luxury side of real estate buying, but condo units are popular, especially in larger metropolitan areas. The FHA loan program allows borrowers to purchase condo | more...