If you’re having trouble making monthly mortgage payments, you may be eligible for a permanent loan modification under the federal Making Home Affordable Modification Program (HAMP). Rates are expected to rise, making loan modifications more difficult for lenders to do. Here’s why economists anticipate a hike in mortgage rates. The Federal Reserve, our country’s central bank, has been buying $1.25 trillion worth of mortgage bonds. This raises bond prices and brings mortgage rates down. But the Fed has announced they’ll end this purchase program on March 31, 2010. ...

VA mortgages are a great way for those who served in the United States Armed Forces to purchase a home.  Many Southern California sellers have rejected offers using VA financing because they believe they are required to pay certain closing costs for the buyer.  We call those closing costs “non-allowables” because the VA won’t insure the loan if the veteran pays them. Those VA non-allowable closing costs are not limited to but include: Underwriting Fee Processing Fee Mortgage Broker Fee Administration Fee Tax Service Fee Wire Fee Escrow Fee If the VA won’t allow ...

Long, but very helpful… Increases in FHA UFMIP, monthly MI factor, and reductions in seller paid closing costs I’m sure you’ve heard through the grapevine all the recent changes that are going to be implemented with FHA loans. Basically now, regardless of consumers’ credit score and down payment, people will start seeing an increase in the amount that they are going to finance (UFMIP). About a year ago, the higher the score, the less UFMIP they would have to pay (risk-based adjustments), but not now. Another thing that may sway less “qualified buyers” in ...

Please join me in welcoming Ken Cook as Mortgages Unzipped newest contributor. Ken is an industry veteran that traces his RE roots back almost 4 decades!: “My start in the industry was actually all the way back in 1973 when I began working with my father who was a developer, builder and dabbled in real estate investment with his partner. Two of my favorite uncles were seasoned veterans and I love to listen to them speak of the wonders of real estate and finance.” Ken has one of the most active presences on the web as it relates to blogging and social media in the mortgage ...

A "Housing Start" is a privately-owned home on which construction has started. It's an important gauge of housing health because it tracks new housing stock nationwide. In December 2009, starts fell by nearly 7 percent. The news is mildly disappointing but not too bad. The likely cause for the Housing Starts drop is December's rough weather conditions. It's tough to break ground when Mother Nature won't coordinate and last month was especially hazardous in a lot of parts of the country. More cheery, however, is that for the second straight month, Housing Permits exploded.  A ...

Securing an FHA mortgage is about to get more expensive. In a statement issued Wednesday, the Federal Housing Authority outlined policy changes to its mortgage assistance program. The shift is meant to both reduce the government group's portfolio risk while strengthening its overall financials. For consumers, the changes mean higher costs. As listed in the official announcement, there are 3 major guideline updates for the FHA: Upfront mortgage insurance premiums are increasing to 2.25% from 1.75% Minimum downpayments for applicants with sub-580 FICOs are rising to 10 ...

Having a staffer on the House Committee on Financial Services for a best friend and growing up here in our nation’s capital it’s almost impossible for us to avoid long conversations about financial recovery, the foreclosure crisis, and the steps that various legislators and government organizations are or should be taking to help homeowners. I enjoy our conversations and it’s always great to get the inside scoop on what’s happening in Washington from a good friend. The work day’s ended, and we’re sitting down for a Guinness at 18th St. Lounge talking shop; new appraisal ...

A number of important changes were announced today by the FHA to reduce risk and improve its finances: The upfront mortgage insurance premium (MIP) will be raised from 1.75 percent to 2.25 percent The minimum down payment will climb from 3.5% to 10% if your Fico score is below 580 Allowable seller concessions will be reduced from 6% to 3% The FHA also plans to request legislative authority to increase the maximum annual mortgage insurance premium so it can reduce upfront costs for prospective home buyers. The proposed changes, which apply to all FHA loans, are expected to go into effect in ...