FHA Mortgages

FHA Streamline Refinances are becoming an option again on anyone with rates in the 5% range.  There are a few things to note about FHA Streamline refinances that you may not know.

First, Mortgage Insurance on FHA loans called MIP.  has gone up twice over the last 18 months.  This as directly impacted FHA loans in the required rate and more importantly lowering your payment.  For FHA refinances, lowering your rate is only half the battle.  You have to have at least a 5% reduction in your payment to qualify.  So with the increase in MIP, you definitely want to contact us to determine if your loan qualifies or there is enough payment savings to meet the burden of proof. 

I am helping a client right now that has a $150,000 loan with a rate of 5.5%, by dropping them more than a point in rate, even though the Mortgage Insurance premium is higher, they are saving $100 a month.  So just because the rates have dropped it might not make financial sense, so we can do a Refi Audit on your current loan to see if it makes financial sense and if you are getting the minimum payment savings required. 

Also, on FHA loans, you can do a FHA Streamline Refi with or without an Appraisal.   Again, when does it make sense to order an Appraisal and does your house have a value concern are all great questions.  You want to let us research your property and inside FHA’s system to determine if getting an Appraisal is needed.  In most cases the only time you need to get an Appraisal on a FHA streamline loan is when you need to roll closing costs into your current principal balance.  All of these very technical questions can be answered specifically tailored to your loan scenario.  Please feel free to contact me to 602-522-9494 or at Matt@TheB3team.com.  or www.ApprovemeHomeLoans.com

Interest Rate Update July 1st, 2011

Do you live in Phoenix?  Are you hot yet?   Interest rates over the last several days have been hit hard as the equity (stock) market shows signs of recovery. But more over is the likelihood that rates are being effective on the high side (going up) from speculation on the freezing of the U.S. debt. Congress is debating right now on raising the federal debt ceiling to allow freer spending in the hardest economic downturn since the Great Depression. The Bond market which controls the mortgage bonds market typically operates out of fear, and so the steep drop in yield is why rates have increase .25% in the last 3 days. Current market rates today are still under 5%, but if this move is any indication of things to come they might not be under 5% for much longer. All experts believe that the Fed (Federal Reserve) was still buying bonds even though the Quantitative Easing ended on June 1^st, and the reality that congress might not approve a higher debt ceiling to buy more debt would only cause rates to increase and quickly.  Want more information 

What does all this mean? If you are thinking of buying or selling your home, now is a great time as if all the prognosticators are right, rates are moving up and will most likely head over 5% for the remaining half of the year. Don’t worry, rates wont jump to 6% overnight, but most likely will be a volatile ride up the rate ladder, up a .25% down a .125% for the rest of the year. Take advantage of rates under 5% while you can.

 Any more questions please feel free to contact Matt Baker(NMLS ID#190779) of the Bookspan Baker Team at Cobalt Mortgage in Scottsdale, AZ. 480-747-6116 or at Matt@BakerMortgageTeam.com or check out his website at www.ApproveMeHomeLoans.com. 

Arizona Mortgage Banker License #BK-0909801

Check out this great article about the State of Real Estate in Phoenix. 

http://www.thehillgroupaz.com/2011/06/22/for-buyers/phoenix-area-real-estate-update-june-22-2011/

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