Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20 percent.
New FHA Annual Mortgage Insurance Premium
President Obama signed a bill in August of 2010 giving HUD the flexibility to increase Annual Mortgage Insurance Premiums. According to Mortgagee Letter 11-10, the increase in Annual Mortgage Insurance Premiums will be effective for all case numbers dated on or after April 18th 2011.
HUD is implementing a 25 basis point increase in the annual premium for terms of greater than 15 years and equal to or less than 15 years. On loans with greater than 15 year terms, the new amount depends on the down payment. If the down payment is equal to or greater than 5%, the new Annual Premium is 110 basis points (bps). If the down payment is less than 5%, the new Annual Premium is 115 basis points (bps).
On loans equal to or less than 15 year terms, the new amount depends on the down payment. If the down payment is equal to or greater than 10%, there will not be any MIP charged. If the down payment is less than 10%, the new Annual Premium is 50 basis points (bps).
Upfront Mortgage Insurance Premium
Effective for loans on or after October 4th, 2010, for FHA regular purchases and refinance products, the Upfront Mortgage Insurance Premium is 1.00%, which decreased from 1.5%. This amount remains unchanged.
FHA’s monthly mortgage insurance payments will be automatically terminated when these conditions occur:
- For mortgages with terms 15 years and less and with Loan to Value ratios 90 percent and greater, annual premiums will be canceled when the Loan to Value ratio reaches 78 percent regardless of the amount of time the mortgagor has paid the premiums.
- For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent, provided the mortgagor has paid the annual premium for at least 5 years.
- Mortgages with terms 15 years and less and with loan to value ratios of 89.99 percent and less will not be charged annual mortgage insurance premiums
Eligibility criteria for HARP Phase II loans are as follows:
The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae;
The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009;
The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009;
The current loan-to-value (LTV) ratio must be greater than 80%;
The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
Info taken from the Briggs and Lang Team (Cobalt Mortgage) http://www.TheBriggsLangTeam.com
Default Properties: The status of a property currently within the Foreclosure process after the Bank records a Notice of Trustee Sale due to lack of borrower making payments for at least 90 days. Properties remain in this status until there is a recorded Trustee Sale or Cancellation of Trustee Sale.
- At the end of September 2011, there were 22,301 Active Default Residential Properties. This is down from the previous month when there were 22,733 Active Default Residential Properties. This is the 10th consecutive month that we have seen decreases in the number of Active Notices. FYI: The All-Time high was in December of 2009 when there were 47,606 Active Default Residential Properties.
Foreclosures: When the Bank either sells the property at the Trustee Sale (Auction) or takes the property back via Trustee’s Deed.
- Foreclosures hit an All-Time, one-month high in March 2010 with 5,451. Last month, there were 2,689 Foreclosures. This is up slightly from the previous month.
REO Properties: Properties that the bank owns due to lack of sale at the Trustee Sale (Auction).
- There are currently 13,556 Residential REO Properties – vs. last month when there were 14,480. There are approximately 3,053 REO Properties listed in the MLS, with an additional 3,412 REO Properties that are in Pending Status in the MLS. This means that there are approximately 7,091 REO Properties that are Foreclosed on, but have not yet been listed in the MLS. (Cromford Reports)
visit www.tyffanisfinehomes.com to search currently listed REO’s
Az reatil sales were up by 8.4% since last year, while bar sales and restaurant sales greq by 3.8%….Total growth in retail…12.4% over last year…the economy overall continues a slow move forward.
Info acquired by Elliot D Pollack
According to Case-Shiller index there was a .2% increase for the 10 and 20 city composites in August vs July. There was however a slight decline by -.1% in Phoenix standing now at 7.7% below last years levels….GREAT Time to BUY!