Tag Archives: Mortgage Insurance

Mortgage improvements and updates in 2017, My predictions…

 

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2017 will bring many new and exciting changes to the mortgage industry and those seeking a home loan.  Some are new programs and new sources for those programs, others are updates and changes to existing residential home loan programs.

These include:

FHA lower Mortgage Insurance premiums                                                              

Increased loan limits on Fannie Mae and Freddie Mac loans

New, affordable home buying programs for first time home buyers

Higher, maximum loan limits on Home Equity Conversion Loans (Reverse Mortgages)

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Some, others are more predictions, like:

Higher interest rates

An improving economy, or even the expectation of a better economy and consumer confidence will cause higher interest rates as investors demand a higher return for their money.  The rates we have seen the last few years were below market in an attempt to keep the economy from slipping back into a recession.

Continued home sellers market

This contributes to higher prices, although higher rates will eventually slow this down.

Housing shortages in some markets

Home buyers continue to move out of state for work or other reasons.  Our market in Boise, Idaho continues to benefit from the influx of out of state buyers moving here.

Tightening of the zero down payment options.

last year, Idaho Housing and Finance Association made several changes to their down payment assistance programs.  Still there are several zero down payment options available and ways to make it very little out of pocket.

With all the changes that happen in the market, it’s really important to get a local expert team working on your behalf.  That being said, I feel optimistic for home buyers and home owners seeking a home loan in 2017.

For more information or answers, contact me here at www.loansbyrogerhowell.com and I will be delighted to help you.

 

 

USDA increases its mortgage insurance fees in October

The Rural Development loan program offered through the US Department of Agriculture is increasing its monthly mortgage insurance fees starting 10/01/2014.

Right now, the Rural Development loan program charges a monthly mortgage insurance fee equal to .4% of the loan amount per year.  This will increase to .5% starting 10/01/2014.

What is the difference in payment?  On a $135,000 loan the monthly mortgage insurance goes from $45.00 per month to $56.30 per month.  This may not sound like much, but it wasn’t that long ago that RD loans didn’t have a monthly mortgage insurance fee.

RD loans in addition, still have the 2% up front Mortgage Insurance, called a “funding fee” that is typically financed on top of the loan.  That would be an extra $2700 added to the above mentioned $135,000 loan, a typical loan size for the RD eligible areas such as Star, Middleton, Kuna, Idaho.

To qualify for the additional $56 per month, a borrower would need to earn an extra $130.23 per month.

Are there alternatives to using the USDA’s Rural Development loan?  Yes, there are.  To determine if they are the best loan program for your situation, you need to call a local lender you trust and discuss your mortgage needs.

Should you not have a lender, you can always call me at 861-7579 and I will go over your individual situation and find the best mortgage program for your needs.

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