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FHA Streamline FHA Maximum Loan Amount details…

August 10, 2009 By Eleanor Leave a Comment

The DEVIL is in the details!

On an FHA Streamline Refinance (we’re doing a ton of these right now!) we found some new (to us) information:

Note: Headquarter Decision allows Streamline Transactions at the 2008 Economic Stimulus Loan Limits for streamline refinances without an appraisal. FHA will permit loans originated under the 2008 loan limits to be refinanced at mortgage amounts that exceed the current 2009 (and future) geographic loan limits. For streamlines with appraisals or full refinances, the mortgage amount may exceed the current geographic limit so long as:

The new loan amount (without MIP) does not exceed the prior case loan amount and
The new appraised value supports the loan amount and the LTV is not greater that 97.95%

If you are considering an FHA Streamline Refinance in Raleigh or CaryNC, and you need to see if your qualify – Call Steve and Eleanor Thorne, 919-649-5058. We have the Lowest Mortgage Rates!

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2% Mortgage Rate on Refinance?

March 4, 2009 By Eleanor Leave a Comment

The Obama Administration outlined today their efforts to help borrowers who need to refinance – and for various reasons can not.

If you’ve made your payments on time, here’s the current plan being floated… REMEMBER! This must be approved by Congress!

A Home Affordable Refinance Program to Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices:

“Provide the Opportunity for Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80% of the value of their homes have a difficult time securing refinancing. (For example, if a borrower’s home was worth $200,000, he or she would have limited refinancing options if he or she owed more than $160,000.) Yet millions of responsible homeowners who put money down and made their mortgage payments on time have – through no fault of their own – seen the value of their homes drop low enough to make them unable to take advantage of these lower rates. As a result, the Obama Administration’s program will provide the opportunity for up to 4 to 5 million responsible homeowners who took out loans owned or guaranteed by Freddie Mac and Fannie Mae (the GSEs) to refinance through the two institutions over time. Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year. For example, consider a family that took a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has $200,000 remaining on their mortgage, but the value of that home has fallen 15% to $221,000 – making them ineligible for today’s low interest rates that generally require the borrower to have 20% home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300. “Okay – here are some details! The 5.16% rate mentioned above is the APR (they left that out). There are also COSTS involved in refinancing which means that if your current rate is 6.5%, and the Obama Administration helps push mortgage rates to the mid to low 4% range – this might make sense.

The other BIG thing to notice is that they are talking about people who’s mortgage is currently owned by Fannie Mae and Freddie Mac. There’s a REALLY good chance your mortgage is owned by Wells Fargo, or BB&T or JP Chase Morgan and they don’t have to fall under these guidelines!

But it still doesn’t get us to that 2% mortgage rate on a refinance! THAT rate is only mentioned for folks who are about to lose their house… and that’s a TON more complicated!

For those details, click here.

If you want to find out more about qualifying to refinance in NC, please contact Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058.

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History is Being Made in Mortgage Lending

March 29, 2008 By admin Leave a Comment

If you are interested in purchasing a home – you want to know what rates are doing – and what you should watch, right? Well, for the last 20 years I’ve been telling people it’s pretty easy to figure out what’s going with rates, because we are in a cyclical business that THRIVES on bad news in the Economy. I tell folks, “it’s like a hospital – business is good – everybody’s sick. Look for bad news in the economy to drive rates lower.” (because very few of my clients are looking for a HIGHER interest rate).

So let’s test that theory with today’s headlines…

Home Equity Falls in the US for the first time since 1945. Meaning for the first time – counting all the people who own their home free and clear – and all the people with mortgages – we are now in a situation where as Americans, we owe more than 50% of what the property is estimated ot be worth. (that’s bad news – especially given the precedence of it being the first time in over 60 years)
MBA announced through a complicated formula that almost 8% of the mortgages in the country are past due – and almost 6% are in some form of foreclosure. (more bad news)
HEADLINE – US Household Wealth DROPS for the first time since 2002.

Okay – so you get my point – we have some pretty bad news sitting in the headlines, so where are my lower rates? They are gone. In fact CNBC says there’s PANDEMONIUM in the Secondary Markets (where they sell mortgage backed Securities / and therefore where they PRICE what the Mortgages are worth / which equates out to what your rate will be).

There were rumors this morning on the trading floor that the US Treasury was going to put out an announcement that mortgages written through Freddie Mac and Fannie Mae (these entities are referred to in the news as GSEs) would have the "full backing and faith of the US government." This gave a few minutes of relief – until Secretary Paulson’s office came out and announced it wasn’t true.

So what’s a home buyer to do? Find a lender who is watching the headlines – and being vigilant about finding them the best rate. The best rate available this morning, might not be the best rate available this afternoon. This SHARP volatility is likely to continue for at least the next six months.

Shortly, in our opinion - everyone in America will understand what the “credit crunch” really is... Because it’s going ot effect college loans, commercial loans and credit cards. The Federal Reserve is going to have to work with the Treasury on “Out of the Box” ideas – and then FINALLY – someone is going to have to figure out that with the underwriting guidelines as strict as they are, the mortgages written TODAY are a VERY safe bet. Once institutions begin BUYING mortgages – this whole thing will clear up. Until then – it’s going to be a bumpy ride.

If you or your friends and family are interested in educated information regarding mortgage loans in the Triangle, call Steve and Eleanor Thorne, 919-649-5058. We offer today’s best mortgage rates, we understand what moves mortgage interest rates, and we work with multiple Investors (Raleigh mortgage broker) to find you the lowest mortgage rates available!