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You may have heard this. FHA is increasing premium structure in April.

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February 15 2011 - Tustin
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I wouldn't be surprised Rudi. It's changed 3 times in last 2 years,..? Or something like that. Kinda like my commission plan,,....LOL!

It's all about cash flow. They should just ask for the 1% up front, not financed, and keep the monthly as is. FHA gets a fast infusion of cash to pool for their hampton homes,..I mean,..insurance pool.
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February 15 2011
As you know by now, the answer is yes.  PMI is now back and a very viable options for your buyers.  You can do as little as 3% down and the PMI is premium is in most cases half the cost of the FHA MI.  

As well as being a Realtor, I am a mortgage banker, so this option is something you may want to share with your buyers.

 
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September 20 2011
Profile picture for Pasadenan
John Ratzenberger portraying
Clifford C. Clavin, Jr. (born 1950), a character  on the American television  show Cheers, co-created by John Ratzenberger?

(Never heard of him...)
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September 20 2011
Thank you Pasa,


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September 20 2011
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I thought all those words were pronounced with the "Ū" sound... typically spelled "oo" but also spelled:
oo ou u_e wo o ui_e ew
(cool soup rude two to bruise new)

for the "eu" sound I only had
ui nu ieu
(suit gnu lieu)

on my list.
so it is nice to add the u_e (mute) spelling to that list.

Although I took extensive speech therapy, it wasn't until programming early speech synthesizer chips that I realized that west-coast Broadcast American English has 14 "simple" vowel sounds, 20 diphthongs (where one vowel changes to a second vowel) and 6 trithongs (where 3 vowel sounds are transitioned together).
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September 20 2011
"I usually only think of the "ui" spelling for that sound as in "suit"."

arrowroot, bandicoot, beetroot, bhoot, birthroot, bitterroot, bloodroot, boot, bumbershoot, cahoot, cheroot, cloot, clubroot, colicroot, coot, crapshoot, disroot, enroot, folkmoot, freeboot, galloot, galoot, gingerroot, grassroot, gumboot, hardboot, hoot, jackboot, loot, moot, offshoot, oot, orrisroot, outroot, outshoot, overshoot, pinkroot, pokeroot, puttyroot, reboot, redroot, reshoot, root, roseroot, scoot, seaboot, sheroot, shoot, snakeroot, snoot, squawroot, taproot, toot, troubleshoot, unroot, uproot, upshoot, wormroot

And those are just the ones that end in "t"

Just messing with ya Pasa, please don't post a chart.
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September 20 2011
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Thank you for correcting my spelling/typing error!

(Yes, I was supposed to know that, but....)
With that humorous post, hopefully I will remember next time!

Thank you also for reminding me that the "u_e" spelling can be used for the French "eu" vowel sound in English. I usually only think of the "ui" spelling for that sound as in "suit".
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September 20 2011
"(By the way, with the recent drop in rates, the extra premium appears to be a mute point)."

Mute :unable to speak : lacking the power of speech
Moot :open to discussion or debate; debatable; doubtful:a moot point: of little or no practical value or meaning; purely academic
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September 20 2011
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Where did Dunester go?

(By the way, with the recent drop in rates, the extra premium appears to be a mute point).
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September 20 2011
Bob agreed. Housing will continue to decline as a whole. This is a regional market. Certain areas like San Marino California, right next to Pasadena, housing has not gone down one iota. It has only increased there.

Happy funding, Rudi
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February 16 2011
"Bob a 1/4 point isn't chump change. On a $200k loan it's a $41.67 increase per month. On a $729k loan it's $151.87 increase per month."

I understand but if the Prices are still in decline they are getting a $200,000 loan for a place that a few months ago would have required a $220,000 Loan,,same with larger loan....

Yes it's absolutely something one needs to be aware of and to consider but I'm still missing the get your Mortgage/"Buyers find your houses now" message/reaction to this news"...
Not trying to be contrary I just don't see it..Not good news but not "Buyers find your houses now"  news in this Market of Declining Prices

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February 16 2011
Bob a 1/4 point isn't chump change. On a $200k loan it's a $41.67 increase per month. On a $729k loan it's $151.87 increase per month.

This is just information for you to consider if you were thinking about getting a FHA Backed Mortgage.

Fannie / Freddie Fees are / have increased considerably too. It' s not all about interest rates. Higher fees affect how much house a person can qualify for.  .... Happy funding, Rudi
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February 16 2011
http://www.businessweek.com/news/2010-11-16/fha-says-its-capital-reserves-are-sufficient-to-cover-losses.html

Interesting that just last November FHA said that they had sufficient Capital Reserves. 
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February 16 2011
An average of $30 a month...Is this correct?

$30?.....Maybe balanced in this Market by the decreasing Property Prices?
Smaller loan amount needed to purchase....

I'm not feeling the "Sense of Urgency" to hurry and sign up now for a Mortgage to avoid the $30 increase...What am I missing here that would stir a "Buyers find your houses now" reaction to this news
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February 16 2011

Link to HUD - FHA Changes

Hard to say Mark.  HUD does have authorization to make more hikes if they see fit.  They have the option to raise the annual premium to as high as 1.55 on LTVs >95.

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February 16 2011
Buyers find your houses now so we can order your FHA case numbers before April 18th. Do you think another 9 months until it goes up again?
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February 16 2011
Kristi,

The 1/4 point increase is on the annual mortgage insurance premium is effective 4/18/2011 only on new loans.

Happy funding, Rudi
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February 16 2011
kristisar, no, existing loans will not be affected.
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February 16 2011
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I'm sorry, maybe I'm just missing this in the article- New loans will have an increase of approx $30/month. Will existing FHA loans be affected?
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February 16 2011
YUP!  4/18 the annual MIP goes UP by .25!  See mortgagee letter 11-10
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February 16 2011
I already received the mortgagee letter.  More changes.
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February 15 2011
Well, I guess they've been looking at the "Affordability" being at an All Time High, so they want to Cash-in.  From my understanding, Fannie Mae and Freddie Mac will be raising fees too.  Did you check out the TBWS Daily today.  Great information on Fed's interpretation of the "Broker" compensation program.  If you haven't, then the link is http://TBWSDaily.com.  Definitely worth checking out there short video.
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February 15 2011
 
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