The new law directs the Federal Housing Finance Agency to increase guarantee fees charged by Fannie Mae/Freddie Mac by no less than 10 basis points.  This means an additional cost to the borrower of  .375% to .5% of their loan amount.  In April FHA mortgage insurance will increase.

With a loan amount of $200,000, the new fee for obtaining conventional financing could cost the borrower $750.00 to $1000.00.  This could include any extension fees that are required to maintain a lock past its original close date (rates are typically locked for 30 days).

This weeks big event will be Tuesday’s Fed meeting.  Investors will be watching for hitns of additional stimulus.

Events Next Week:

Tues 12/13
Fed Meeting
Retail Sales
10-year Auction

Wed 12/14
30-yr Auction

Thur 12/15
PPI
Industrial Prod.

Fri 12/16
CPI

For WA, OR and CA, all counties max limit is $417,000.00.

The new fee structure for FY12 is as follows: 

• 2 percent upfront guarantee fee for purchase transactions;
• 1.5 percent upfront guarantee fee for refinance transactions; and
• 0.3 percent annual fee for both purchase and refinance transactions.

Additional information about Gauranteed Rurla Houisng.

Here is a recap of the updated HARP guidelines:

1)  Removing the 125% loan to value ceiling for fixed rate mortgages.

2)  If refinancing into an adjustable rate mortgage there is a 105% cap.

3)  Eliminating the appraisal where there is reliable AVM estimate available. Currently some Fannie Mae HARP refi’s have qualified to have appraisals waived, it appears this may become more of the norm with HARP refi’s.

4)  Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and reducing fees for other borrowers;

Extending the end date of HARP until December 31, 2013 for loan originally sold to Fannie or Freddie on or before May 31, 2009.

Last weeks fed announcement to boost the economy helped mortgage rates hit historic lows mid week.  This weeks New Home Sales will be released today, Durable orders will come out on Wednesday, Pending Home Sales on Thursday.  Friday could be a big day with Core PCE inflation, Personal income, Chicago PMI Manufacturing and Consumer Sentiment.

FHA/HUD loans offer consumers an option to buy these affordable homes with low down payments and affordable interest rates.   To find out more about these products, see the matrix below.

If you would like to apply for FHA financing or have additional questions, please feel free to call Jim Hungerford at 971-226-8403.

1 unit $417,000;   2 unit $533,850;    3 unit $645,300;    4 unit $801950                              

These rates do not reference a specific loan program; rather, they reflect general market conditions, which are subject to change at any time.

Credit risk pricing and how it impacts your interest rate/discount points (cost to buy rate down):

• Rates change daily – Mortgage loan interest rates and discount points are driven by the prices of Mortgage Backed Securities.
• Credit (fico) Scores – Lenders look at your mid credit score (typically 3 credit bureaus) to determine you credit risk.  A+ credit would be 740 and above.  From there they are categorized in 20 point increments (720-739, 700-719, 680-699, 660-679, 640-659, 620-640, no fico)
• Loan to value – Typically the lower the loan to value (LTV), the lower the risk.  Loan to values of 60% or less are considered the lowest risk
• Transaction type – The risk level from low to high – Purchase, rate and term refinance, and cash-out refinance.
• Transaction type continued – The risk level from the low to high – Primary residence, second home and investment property
• Property type – Single family residence, PUD, condo then 2-4 unit properties.

• Escrow account – If your LTV is 80% or lower, then you have the option to waive escrows (taxes and insurance included in monthly payment), but it can affect your discount points.

Rates do not reference any program and/or loan amount

THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:

Conforming – Loans designed for primary, second and investment properties.  There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher).

Non-Conforming – .  Typical loan amounts above 417,000.00.

FHA- 30 year amortized loan.  3.5% down required by the borrower (can be gifted by an acceptable source).

VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

Rural Housing- Must be in rural housing area.  100% financing based on appraised value.  Adjustable household income cannot exceed the maximum allowable income limits (currently suspended).

All-in-One Construction –   one time close for both conforming and non-conforming

Other products available

ANY QUESTIONS REGARDING THIS INFORMATION PLEASE CONTACT:

Jim Hungerford at 971-226-8403

1 unit $417,000;   2 unit $533,850;    3 unit $645,300;    4 unit $801950                              

These rates do not reference a specific loan program; rather, they reflect general market conditions, which are subject to change at any time.

Credit risk pricing and how it impacts your interest rate/discount points (cost to buy rate down):

• Rates change daily – Mortgage loan interest rates and discount points are driven by the prices of Mortgage Backed Securities.
• Credit (fico) Scores – Lenders look at your mid credit score (typically 3 credit bureaus) to determine you credit risk.  A+ credit would be 740 and above.  From there they are categorized in 20 point increments (720-739, 700-719, 680-699, 660-679, 640-659, 620-640, no fico)
• Loan to value – Typically the lower the loan to value (LTV), the lower the risk.  Loan to values of 60% or less are considered the lowest risk
• Transaction type – The risk level from low to high – Purchase, rate and term refinance, and cash-out refinance.
• Transaction type continued – The risk level from the low to high – Primary residence, second home and investment property
• Property type – Single family residence, PUD, condo then 2-4 unit properties.

• Escrow account – If your LTV is 80% or lower, then you have the option to waive escrows (taxes and insurance included in monthly payment), but it can affect your discount points.

Rates do not reference any program and/or loan amount

THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:

  Conforming – Loans designed for primary, second and investment properties.  There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher).

  Non-Conforming – .  Typical loan amounts above 417,000.00.

  FHA- 30 year amortized loan.  3.5% down required by the borrower (can be gifted by an acceptable source).

  VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

  Rural Housing- Must be in rural housing area.  100% financing based on appraised value.  Adjustable household income cannot exceed the maximum allowable income limits (currently suspended).

  All-in-One Construction –   one time close for both conforming and non-conforming

Other products available

ANY QUESTIONS REGARDING THIS INFORMATION PLEASE CONTACT:

Jim Hungerford at 971-226-8403