FHA Gives Home Buyers One-Month before Mortgage Insurance Premiums Increase

September 1, 2010--The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium, according to Gibran Nicholas, chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers and brokers. “After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.”

What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.

“In this example, the home buyer would lose $59.55 per month, or $7,146 over a 10-year timeframe,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”

Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.

Provided by RISmedia

New website provided by Fannie Mae--Providing your Options

Fannie Mae has launched KnowYourOptions.com™, a new consumer education Web site that outlines the choices available to homeowners who are struggling with their mortgage payments, and provides guidance on how they can contact and work with their mortgage company to find solutions.


The information is very informative.  It provides a "one stop shop" for answers to the questions you may have in regard to your mortgage, mortgage default, foreclosure and options to avoid foreclosure.  It serves as a great tool for deciding the next step if you or someone you may know is having a difficult time making mortgage payments.


Take a peek, its a pretty cool site! Immediately upon landing on the page, a woman stands up to "speak" with you about how the site can help.  Its like having your own personal guide.

Visit:  KnowYourOptions.com

Did You Hear? Did you Hear?

The Towers of Channelside has been approved for FHA financing!  Hooray!


The Towers of Channelside, a luxury condominium community in Tampa Bay's Channel District — recently secured FHA financing approval.  This is a huge opportunity because FHA financing opens the door to home ownership for more people by allowing

• Lower down payments — just 3.5%. With prices at The Towers starting at under $200,000, that could mean a down payment just under $7,000.
• Lowest fixed or ARM interest rates in the market
• Lower credit score rating and higher debt-to-income ratios

NOW is the Right time to Buy.  Breathtaking views and convenience makes the Towers at Channelside the Right Place to live in Tampa Bay! 

Bank of America to Settle More Countrywide Charges

Bank of America has agreed to pay $108 million to settle charges that Countrywide Financial Corp., which it acquired two years ago, charged large and unfair fees to borrowers facing foreclosure.

The settlement, which will refund money to about 200,000 borrowers, was announced Monday by the Federal Trade Commission.

FTC Chair Jon Leibowitz said Countrywide engaged in “callous conduct that took advantage of consumers already at the end of their financial rope.”

Source: Associated Press, Alan Zibel (06/07/2010)

Yikes. Mortgage Applications Fall Sharply

Mortgage applications declined 27.1 percent last week compared to the previous week, on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.

The unadjusted purchase index decreased 27 percent compared with the previous week and was 24.1 percent lower than the same week a year ago. This is the lowest level of applications for home purchases observed in the survey since May 1997.

“The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, vice president of research and economics for the MBA.

Mortgage rates are at bargain levels: 

• 30-year fixed-rate mortgages decreased to 4.83 percent from 4.96 percent.
• 15-year fixed-rate mortgages decreased to 4.19 percent from 4.32 percent.
• 1-year ARMs decreased to 6.81 percent from 6.86 percent.

Source: Mortgage Bankers Association (05/19/2010)

Florida Bound Oil (Courtesy of BP)

Fla. to BP: Pay for ad saying we’re OK

ST. PETERSBURG, Fla. – May 10, 2010 – Florida CFO Alex Sink met with BP Executive Keith Seilhan at the Deepwater Horizon Incident Command Center in St. Petersburg, and asked for BP's commitment to help the state and its small businesses recover from economic losses by funding an advertising campaign to let the world know that Florida and its beaches are oil-free, open for business and as beautiful as ever.

Our businesses and our state cannot afford for our number one industry to be impacted by misinformation, Sink told BP. We must act quickly to preserve the most economically important months of the tourist season, especially for our Gulf Coast counties.

The state is already attempting to show potential visitors that the oil slick has not impacted tourist sites. Through www.VISITFLORIDA.com, vacationers can watch live Twitter feeds and read up-to-the-minute information on the status of any city or region in Florida, allowing them to see first-hand whether or not an area is currently affected. VISIT FLORIDA is working closely with DEP and other state agencies to ensure that Floridians and visitors are kept informed of any potential impacts through real-time updates.

Sink asked BP to dedicate an executive level representative to Florida, with that exec focused on the mounting costs to Florida businesses from interruptions caused by oil spill concerns. According to Sink, the Florida Consumer Services Division has already heard from Panhandle businesses facing business interruptions from the oil spill. During her meeting with Seilhan, Sink also emphasized the need to expedite the claims process for Florida's small businesses.

As another way to offset potential losses, BP executives were asked to recruit Florida residents to do any cleanup work and to buy supplies from the state's businesses.

© 2010 Florida Realtors®

Tax credit has expired for most but still available for Military

WASHINGTON – April 28, 2010 – Members of the military, foreign service and intelligence communities may have an additional year to buy a home and claim the homebuyer tax credit – up to $8,000 – that expires for most Americans on April 30.

To qualify for the extended tax credit deadline, service members must have served on official extended duty outside of the United States for 90 days or more at any time between Jan. 1, 2009, and April 30, 2010. If so, they have until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. The rule includes both the $8,000 first-time and $6,500 repeat homebuyer tax credit.

Under the law, "qualified service members" includes those serving in the uniformed services of the United States military, a member of the Foreign Service of the United States or an employee of the intelligence community.

The rule that requires buyers to repay the credit if they move out of their home within three years has also been waived for qualified service members if they must sell their home after receiving government orders for extended duty service.

© 2010 Florida Realtors®