September 22, 2010


Current Market Conditions

Rates are starting to climb slowly. The good news is that they are still at very low levels (4.375% 30Yr/ 3.75% 15Yr) and mortgages are still a bargain. The 7/1 IO ARM product. A lot of people are considering this loan for refinancing since it gives them a break from high housing expenses while they wait for their houses value to recover. Not a bad thought actually considering the fact that a $200K loan amount taken at 3.75% IO would give you a monthly payment of $625.00. Can you pay toward your principal? Of course. YOU decide how much your monthly payment will be.

On a larger scale….has anyone notices that Wall Street is nearing record levels again? Last I checked, the DOW was sitting at 10,720. Not too far off the 12,000 levels before the crash.

Quick Note On Investor Loans

· You can get 80% investor loan financing. Rates are much better however on 75% LTV loans.
· Seller contribution is limited to 2%
· You cannot use gift funds from any source for down payment on an investment property.
· Know that the taxes will be higher since there will not be homestead exemption.

Big FHA Changes October 4th

Beginning October 4th, FHA upfront MIP drops from 2.25% down to 1% BUT the monthly MIP rises from .55% to .90%. This change equals to a net rise in payment on a $100K loan of about $24.00. Just what we needed HUD. Thanks!