Thursday, February 21, 2013
This post is brought to you by Mike Dunn
and Jeff Sharp
of Walden Mortgage Group.
There are two big changes going on in the mortgage world in the next few months. One of the most popular types of low down payment mortgage loans known as a Federal Housing Administration loan, or FHA loan for short, will be making changes to the mortgage insurance premium collection policy (you may know it as mortgage insurance, or MI).
If a new borrower’s MI is not ordered before April 1st (meaning the final contract is completed), the annual MI, which is included in the monthly payment to the lender, will increase by .10%. That means that if you have a loan amount of $180,000, you would pay an extra $15 per month on your mortgage payment and, more specifically, towards your MI, if your MI is not ordered before the April 1st deadline.
So what do you need to do?
If you are already in a loan, locked in, and not looking to refinance, these changes do not affect you. If you are in the process of buying a house and need FHA financing or you are planning on refinancing, you need to speak with your Walden Mortgage Group loan officer as soon as possible to lock in the lower MI. You must have your final contract completed by Friday, March 22nd at 5:00pm to ensure proper processing turn times are allowed for what will surely be a busy last week of March.
The second, and possibly more impactful change, will occur for new borrowers who do not lock in their MI before June 3rd
, 2013. Currently, if you are paying MI, you can drop this added monthly fee after 5 years of owning your home, as long as you have made on-time payments and have paid the loan down to 78% of the original sales price. For those who miss this deadline and still
desire to use FHA financing, you will be required to pay the higher MI for the entire term of your loan! After the 5th year in your new home and with a loan amount under 78% of the original sales price, you would have to refinance your loan to drop the MI, but likely to a higher interest rate as rates will likely not be as low as they are today. In order to lock in your MI before the June 3rd deadline, a completed contract is needed before Friday, May 24that 5:00pm.
These changes can be confusing. Walden Mortgage Group is here to help. If you have any questions regarding FHA loan changes, mortgage insurance or today’s interest rates, contact your Walden Mortgage Group loan officer at 859.514.4444 or visit our website.
Monday, December 31, 2012
Tonight, everyone will be celebrating the end of 2012 and look forward to 2013. For many people, the new year means a fresh start and a new outlook. For a majority of people, a new year means new resolutions: pledges to make a change in the upcoming year for a better life. We’ve narrowed down a list of the three most common New Year’s resolutions and included some tips on how to help you stay focused in 2013.
1. Get In Shape
There’s no doubt that Get In Shape/Get Fit/Lose Weight/Get Healthy is one of the top New Year’s resolution on many people’s list. Why not let your home help you keep your resolution? Losing weight starts with being more active! Use the bonus room in your new Ball Home
to put a treadmill or weight machine. Take advantage of the many walking trails and parks around your subdivision, like Chilesburg
or Notting Hill
. Getting out and getting active around your community is a step in the right direction to leading a healthier life!
From all of us at Ball Homes, we wish you a very happy New Year and we look forward to what 2013 has in store!
2. Get Organized
Many of our popular floor plans
offer sizable closet spaces, attic areas, and storage options; make the most of them! Install space saving shelving in your garage so that everything has a place. Use large plastic bins to store holiday decorations, sports equipment, and out of season clothing items. Reorganize your bedroom closet to make sure you aren’t keeping clothing you never wear. If you haven’t worn an item in the last 6 months, chances are you probably don’t need it. For tips on how to organize your kitchen, read our previous blog post
3. Save More/Get out of Debt
Saving more money throughout the year starts with changing small habits, and the best place to start is by cutting energy use in your home. To save on your utility bills, lower your thermostat before you leave for work. Install compact florescent bulbs in your lamps. Switch off your electronics and lights when they aren’t in use. Utilize your fireplace instead of turning up the heat a few degrees. If you really want to take a big chunk out of your debt this year, why not look into refinancing your home? With mortgage rates at historic lows, now is the time to refinance and save money on your mortgage payment. Contact a loan officer at Walden Mortgage
for more information on your refinancing options.
Tuesday, September 25, 2012
Many factors go into deciding whether or not to purchase a home. But, if you are able to buy, it’s been proven to be the cheaper route. Trulia.com announced two weeks ago that in America’s 100 largest metropolitan areas, buying a home is more affordable than renting.
Asking home prices have risen by 2.3% year over year, however, rents have risen more (4.7%). This means that home prices are lower relative to rents than they were a year ago.
Mortgage rates have also fallen. The best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. With rates that low, it makes home buying a powerful option.
There are several other factors to take into consideration when making these calculations, such as tax deductions and the length of time that you plan to remain in your home. You get the best savings by staying in your home seven years or longer. Seven years is the average amount of time a homeowner remains in their property, so for most people, this cost savings will be high.
The decision to rent or buy a home is very personal. There’s a strong emotional component: some people want the security of homeownership and others want the footloose freedom of renting. Affordability is at an all-time high and renting is no longer viable as the cheaper option. If you are able to buy a home, now is the time to do it!