Rates jumped end of last week and this week. The markets are being reminded that increased economic activity can lead to higher rates. No one is talking "double dip" anymore, and the inflation word is creeping back into vocabularies given the price of gasoline. Refinance activity fell last week as did purchases slightly.
HARP 2.0 has officially started this week. Realize the rates are slightly higher. But I am seeing some people are getting a good savings. (remember property value is not an issue)
Increased FHA Premiums are coming. Get those FHA buyers into housing. They need to have a sense of urgency on this. It will affect their buying power! Case numbers need to ordered prior to the change date.
Changes in underwriters guidelines are happening weekly right now. They are sure to keep all of us on our toes!...Keep informed...If you are unsure of a certain scenarios just call and ask.
Our Local market is moving sharply right now. We all should be happy, it is not like this everywhere.
Where we go the country goes...We are so lucky to live where we do!
HAMP 2.0 starts on the 19th of March..No value issues on those refi's originated a prior to June 1 , 2009 anymore..
Earlier this week, President Obama announced that for FHA home loans originated prior to June 1, 2009, the up-front mortgage insurance premium (UFMIP) for streamlined refinance transactions would decline to 0.1% from 1.0% and the annual fee would drop from 1.15% to 0.55%. A quick calculation shows that on a $400,000 home loan that a borrower would save $3600 ($4000 - $400) on the UFMIP alone.
Some industry insiders have suggested that loan prepayment speeds will pick up as a result. However I'm not convinced that many homeowners with FHA mortgages will be able to take advantage of the program changes, given that roughly two-thirds of all FHA-insured 30 year fixed mortgages were originated AFTER the above mentioned cutoff date.
More importantly, what about all the people who have already secured an FHA streamline refinance over the past couple year that now cannot take advantage of these new rules? Once again it seems that people who acted quickly to make life better (refinanced already) get the short end of the stick as they appear to be stuck with the 1% UFMIP factor and the monthly 1.15% mortgage insurance factor. Those who procrastinated or those who already have a decent rate are the ones left to possibly benefit. We can only hope that everyone who streamline refinanced this year will eventually have their MIP reduced, so that they too can enjoy greater monthly savings.
Below is a link regarding some of the additional details of the program:
http://www.mercurynews.com/real-estate/ci_20115768/q-obama-administrations-latest-mortgage-aid-plan
How can a $2500 per month payment on your home equate to a $1943 per month payment on a rental property?
Are you worried that owning a home will cost more per month than a rental payment? You may be pleasantly surprised at how much more a monthly house payment can be than a rental payment, and yet still equate to the same amount of money out of your pocket at the end of the year due to income tax savings.
All of your mortgage interest and property tax are deductible on your Federal and State Income taxes. Here is an example of what you could save:
You buy a home for $500,000 with a down payment of $100,000 and a 30-year fixed loan of $400,000 with a monthly payment of $2500 ($1333 Interest, $576 Principal, $524 Property Tax, and $67 Hazard Insurance).
The tax deductible portion of your mortgage:
$1333 Interest
$ 524 Property Tax
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$1857 per month is tax deductible
For this example, let's say your gross income is $108,000 per year; and you are currently paying Federal Income tax of about 25% of your yearly income ($27,000), and State Income Tax of about 5% of your yearly income ($5,400). This is a total of $32,400 in tax.
The tax-deductible portion of your monthly payment ($1857) for twelve months adds up to $22,284. Since your tax liability, in this example, is a total of 30% of your yearly income, and your yearly income is reduced by $22,284; you will pay $6685 less in taxes ($22,284 times 30%).
If you divide your tax savings by 12, ($6685/12) your monthly savings in this example is $557. For this example your monthly house payment is really costing you only $1943 per month, instead of $2500 per month.
Well Harp 2.0 starts this month .. what is that
VALUE DOES NOT MATTER!
The new refinance parameters are out!
The Government has removed the value restrictions for refinances on the Fannie Mae and Freddie Mac loans. If your loan was delivered to Fannie Mae or Freddie Mac Prior to 6/01/2009 you may be eligible to refinance at current low interest rates. If you or anyone else you know who's loan is greater than the value of the property, this is the program they need to look into. It is called HARP 2.0.
Yes this counts for investment properties and 2nd homes too.
Landmark Mortgage Group is a division of Opes Advisors and licensed by the CA Dept. of Real Estate, Real Estate Broker license 01458652 and NMLS 235584. Equal Opportunity Lender. 
