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How Do I Pick My Mortgage Interest Rate? |
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Mortgage Interest Rates change on a continual basis, and if the last couple of months are any indicator we have a roller coaster that makes Mr Toads Wild Ride look like a smooth sailing. Over the last few weeks, with discussion of the Fed Bailout of Wallstreet among other things, we've seen dramatic reversals in the direction of Mortgage Backed Securities (MBS) and big intraday movements which have had instant affects on mortgage interest rates.
If you follow MortgageMan on Twitter you'll see Mortgage Backed Securities updates during the day, which will give you a good idea of what is happening in the mortgage interest rate world on any given day. An upward movement in Mortgage Backed Securities translates into better mortgage rate pricing.
Every day there is a range of mortgage interest rates published from wholesale mortgage lenders. A range may be from 5.625% on the low rate / high cost end, to 7.25% on the high rate / low cost end. You get to pick the rate you want based on the payment and cost structure that fits best into your long and short term financial goals. Be sure to discuss your rate options with your mortgage professional. In the current Real Estate market environment, a seller may decide to contribute money to closing costs and discount points which helps you get to the lower mortgage rate side of the scale. On the other side, selecting a rate on the higher end of the scale may allow the bank to help cover some of the closing costs.
All FHA mortgage lenders get similar pricing, although there are some smaller "boutique" FHA wholesale mortgage lenders that may have slightly higher rates due to their smaller buying power of FHA mortgage loans. In difficult cases, where the loan doesn't meet the specific guidelines of a wholesaler, the boutique FHA lender may be the FHA lender of choice. We keep several boutique FHA mortgage wholesale lenders in our back pocket for these types of transactions.
For more information on FHA mortgage financing, call Paul Dunn at 520-225-0380.
Apply now for an FHA Mortgage Loan on our secure server. |
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More New FHA Mortgage Loan Rules For Getting A New FHA Loan |
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Just when you thought it was safe to go out and buy a new home HUD has changed the FHA mortgage rules with Mortgagee Letter 2008-25 which is a response to the "Walking Buyer" and "Buy and Bail" trends in Arizona as well as the rest of the country.
A Walking Buyer (or Buy and Bail buyer) who has a home they cannot sell because they are upside down on the mortgage simply finds an affordable home and rents the current home. This helps them to qualify for the new home and then, once they move into the new home... they let the old one go into foreclosure.
Additionally, this fraudulent practice put yet ANOTHER FORECLOSURE HOME on the market and we just don't need additional foreclosures out there bringing property values down further.
Under the old rules (up until a few days ago) it was acceptable to use rental income on your existing home to qualify for your new Arizona FHA Mortgage Loan.
There are certain circumstances in which the new rental income may be used to qualify for the new Arizona FHA Mortgage Loan.
There are 6 things FHA home buyers need to know about this change:
- It is temporary
- To use the income the home buyer must be moving to a new city
- To use the income the new home must be outside reasonable commuting distance from the old home
- To use the income the old home must be leased for at least one year
- To use the income the home buyer must document the receipt of the security deposit
- To use the income the existing home must have a 25% equity position
Apply for an Arizona FHA Mortgage Loan Now.
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With The FHA Secure Short Refinance What Happens When I Owe More Than My House Is Worth? |
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With the FHA Secure Short Refinance, when you owe more than your home is worth, there are typically three outcomes. Which option you are presented with in the outcome of your FHA Secure Short Refinance will depend upon the negotiations with your current mortgage lender.
- Short Refinance Write Down - This is the option of choice and the option we pursue when we package an FHA Secure Short Refinance offer to your current lender. The existing lender writes off the amount of indebtedness that exceeds the amount that can be refinanced into the FHA Secure Short Refinance.
- FHA Secure Refinance with subordinate financing - In many cases the existing lender will accept a secondary lien in the amount that the payoff is short.
- FHA Secure Short Refinance with a partial unsecured loan - In some cases the existing lender will write off a majority of the existing loan and allow for the creation of an unsecured loan of a portion of the amount that cannot be covered by the new loan. An example of this may be that the new FHA Secure Short Refinance loan can cover all but $50,000 and the existing lender agrees to write off $43,000. They may allow for an unsecured low or zero rate loan to cover the final $7,000 in an effort to make the transaction work.
Apply for an FHA Secure Short Refinance today.
Find out about a Las Vegas fha Short Refinance.
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