Archive for the Mortgage Refinance Category

APR vs Interest Rate When Closing a Home Mortgage!

Van Morrison - Days Like This What makes all buyers gasp or smile at the closing table on the purchase of a home?  Well, it's usually the A.P.R or annual percentage rate.  You gasp to know how much you actually pay (with interest) for a home.  But, you smile as you understand that interest (and taxes) are a income tax write-off.  This APR is definitely not the interest rate that you negotiated or received from your mortgage broker.  But, unfortunately, it can be manipulated in advertising and under-disclosed.  Usually, the lower the APR, the better the over-all deal for the consumer… Read More

Conventional Mortgage Loan Requirements from Underwriting!

The Work Song from Cinderella   Seller Contribution limitations: Percentages are based on the lesser of the sales price or appraised value. Investment Property (LTV=loan to value/amount loaned from lender to amount of buyers downpayment) LTV - ALL - 2% Primary Residence and Second home LTV > 90% - 3% LTV > 75 < 90% - 6% LTV < 75% - 9% Child support/alimony/separate maintenance payments: Treated as an installment account.  (Monthly amount is treated as a monthly debt to calculate debt-to-income ratio). • A copy of the divorce … Read More

Average 30-Year Fixed Home Mortgage Rates Since 1983! Need I Say More?

George Strait - "Need I Say More?" Need I say more?  Just in case you need some inspiration, here is the average Fannie Mae/Freddie Mac mortgage rate since 1983, the average FHA mortgage rates since 1993 and the 200-yr look back at mortgage rates.  VERY INTERESTING! [nggallery id=43]… Read More

More Details on FHA Mortgage Finance Changes! What it Will Mean to the Buyer!!

"Say it Ain't So" - Weezer   I wrote last week warning of upcoming changes in FHA financing. The 3.5% down payment on FHA loans could be more expensive for buyers than expected. when considering financing options, the savvy buyer must consider the down-payment required, the interest rate and the closing costs to get a full picture of what the loan will cost!! Beginning April 1, 2013, the mortgage insurance premium (MIP) will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners.  The staggering increase will occur on 6/3/2013 when FHA's policy on the … Read More