The FHA Loan to Value Requirements

Good Morning!

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!

Jobs Report for August

Wow another great – shortened week! I know you are getting busy out there! Let me know what I can do to help. Make it a great weekend!

Market Update

The Jobs Report for August came in this morning at 84,000 jobs lost. But the real buzz in trading is the swelling unemployment rate, which jumped from 5.7% to 6.1%. This marks the highest unemployment rate since September 2003.

Mortgage pricing has been on a rally for the past several days and looks like it’s about to turn the other way. It’ll interesting to see what happens next week! Stay tuned!

Rates Get Better

I mentioned on Friday that interest rates were on a roller coaster ride late last week. Fortunately, I noticed that mortgage bonds were overbought midweek and got my clients locked in saving most of them 0.125% on their 30 year fixed mortgages. This saved them anywhere from $25 and $40 per month. I look forward to helping your clients too. This weeks newsletter explains what happened last week.



Let’s get those buyers off the fence asap! Franklin Loan Center’s platform is strong so utilize me with your clients who need to close fast. FHA IN 21-30 DAYS! At the end of September, as you know, the DAP will be going away, yet we have until September 5th to get the deals accepted and opened. If you have a buyer who needs to use these programs call me asap! If they can’t close before the end of September we can use a gift from a family member or other non-profit organization as long as the seller is not contributing toward the downpayment, up to 6% toward closing costs are still okay!

Call me today to get the ball rolling. I’ll pay for the appraisal send along the attached flyer with your client during the pre-qual interview.

I’m never too busy for any of your referrals.

Give me the opportunity to make you look good…
We’ve had a great rally this week in the mortgage market and I’ve locked my pipeline to protect my clients from higher interest rates. This week I’ve save most of my clients 0.125% or more on their interest rate and they’re happy with the lower payments.

Market Update

FHA loans and are going strong. Franklin Loan Center’s in-house closing platform is getting the job done quickly and the ability to sign loan docs in-house makes it easy for the clients with out-of-the-area escrow companies.

Market Update

Market Update

Mortgage Bonds are trading higher this morning, despite a report that manufacturing in NY is stronger than anticipated.

Normally a better-than-expected economic report would be bad for Bond prices. However, the declining prices of oil, precious metals and other commodities have decreased inflationary pressures and have helped push Bonds higher so far today.

We got a rally late today for the better I recommend floating for now.

Fed held constant the Fed Funds rate

Last week the Fed held constant the Fed Funds rate, which had investors ponder the stability of the market. We know the Fed should hike rates to hedge inflation, but the question is will they and when? As the Fed was cutting rates remember I warned that mortgage rates would go up and hey have. I want to mention that if the Fed hikes rates mortgage pricing will get better. I’ll keep you informed as I get the information.

It’s a short week for the Fourth of July weekend. I hope you are safe while enjoying the festivities!


Caught the flu bug?

Good morning!

The mortgage market was still volatile last week with several midday prices changes. Typically banks don’t come out with price changes unless there is a large shift in mortgage backed securities throughout the day. Well, we are seeing that the price of the bond has been moving around quite a bit, and the result: several pricing changes. Check out the newsletter for more information.

Also, caught the flu bug? Check out ways to prevent getting sick and what to do about it if you are. There are some great tips!

Talk soon and make it a great week!


Oh by the way, if you or someone you know is interested in buying for refinancing a home… give me a call or email to cover the options! I’m never too busy for your referrals. Thanks.

Countrywide and Bank of America

Well the rumors are true that Countrywide and Bank of America will soon be partners as Bank of America announced yesterday that they will by Countrywide for $4 billion. This comes as no surprise as Countrywide’s portfolio is reporting a delinquency rate over 7% up from 4%, and after letting nearly 11,000 employees go.

Mortgage back bonds are still getting better this week helping to rally mortgage pricing after news this week from Ben Bernake that the Fed will continue to cut rates. New fed target rate is 2.75 down from 4.25 today. The cuts will help Home Equity line interest rates tied to the Prime rate, credit cards, and other consumer driven interest rates. Stay tuned for more information.