Clearwater Florida Homes Condos Real Estate

 

FHA first shared these changes on August 4th, after it had been approved by Congress and then the President signed off on it on August 11th. FHA has finally come out with the mortgagee letter, ML 2010-28, which puts it officially in writing now.

This mortgagee letter is effective on FHA loans in which the case number is assigned on or after October 4th, 2010. This policy will increase the monthly mortgage insurance and decrease the mortgage insurance premiums for purchase money and refinance transactions, to include FHA streamline refinances.

 

 

 

So what are the major FHA changes regarding mortgagee letter 2010-28? - For terms greater than 15 years -

• LTV's <= 95% will increase the monthly fee to 85 bps  >> Old monthly fee was .50 bps
  

• LTV's >   95% will increase the monthly fee to 90 bps  >> Old monthly fee was .55 bps 

 

And lastly, it will reduce the Upfront Mortgage Insurance Premium, UFMIP, from 225 basis points to 100 basis points.

 

 

How will this affect new homebuyers?

3 quick examples (these examples are putting the minimum down payment of 3.5%)

• On a $275,000 mortgage – the change in payment would be about $70 higher a month

• On a $200,000 mortgage – the change in payment would be about $45 higher a month

• On a $125,000 mortgage – the change in payment would be about $27 higher a month

 

Buyers Beware - If you have your eye set on a specific home, or are negotiating on a property, or are very serious about buying soon, you will have 31 days to make a mortgage application before these new changes take place.

 

 

FYI in regards to Charlie Ragonesi's  comment, #4 - I still don't think that this will move buyers from FHA loans to conventional loanss.  Here is my reason why... please read : FHA loans vs conventional loans  - The buyer's buying power will only decrease by about $10,000 or so. 

 

 

These 2 posts I wrote previously below go into more details about the changes and showing more detailed figures.

 

• Bill H.R. 5981 passes - FHA Mortgages to increase it's annual mortgage insurance premium

• STOP TAXATION? - The new changes for FHA loans are being called : The New Homebuyer Tax

 

 

 

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

 

 

 

 

Many of Laurie's friends have been chatting and realized that if we all sent flowers to her service in New York or to her Memorial Gathering in Long Beach there wouldn't be much room for people.  We have set up a Laurie Manny Memorial Fund for those who would like to make a donation.  I know there will be tons of flowers at her services in New York and we will be providing flowers in Long Beach so we thought that perhaps her friends might like to donate to a fund that will go to her family.  Your donation will not be tax deductible as you are sending a gift to a friend.

 We had thought we would be able to set it up with a national bank but the paperwork was more then seemed necessary.  Marlene Bridges is at her home in Palm Springs this week and was kind enough to inquire at a local bank and set up the account there.

Make Checks Payable to:   Laurie Manny Memorial Fund

Mail to:  

Attn: Tellers

El Paseo Bank

The Market Place

39580 Washington Street

Palm Desert, CA  92211

We plan to close the account on October 1 and distribute the money to the family at that time.   We will also have a place where you can make a donation at the Memorial Gathering in Long Beach for those who will be there.

If you have questions you can contact Kaye Thomas, Lynda Eisenmann or Marlene Bridges .  We hope to see you next Thursday iin Long Beach!