Mortgage backed securities are up on the day today and getting a good start for the week! I am carefully floating as of right now and if I see the market turn I am ready to pull the trigger and capitalize on this quarters best rates for your clients.
It may have been confusing regarding Mortgage Insurance Premiums (MIP), Monthly Mortgage Insurance (MMI), Private Mortgage Insurance (PMI) information updates I provided. Let me clarify:
Conventional financing only has PMI if you put down less than 20%.
The minimum down payment for a primary residence is 10% for conventional.
FHA minimum down today is 3%, as of January 1, 2009 it will be 3.5%.
FHA financing has a one-time MIP, now 1.75% of the loan amount, which can be financed into the loan, along with MMI payment paid monthly.
MIP and MMI are two separate insurance premiums.
MIP is paid to HUD directly at closing and the borrower pays the MMI monthly to HUD.
Sorry about the confusion. I hope this helps.
The FHA Loan to Value Requirements are staying at 3% until January 1, 2009. Attached is the mortgagee letter from HUD which gives example and can help you understand. Please call with any questions.
Oh by the way, I am Never too busy for any of your referrals!