» FHA Loans http://www.americanstreetblog.com/blog1 Your platform for voicing your opinions about the housing market. Fri, 18 Jul 2008 14:26:21 +0000 http://wordpress.org/?v=2.3.3 en Mandatory FHA Loan Fees Increase For Some, Fall For Others http://www.americanstreetblog.com/blog1/2008/07/18/mandatory-fha-loan-fees-increase-for-some-fall-for-others/ http://www.americanstreetblog.com/blog1/2008/07/18/mandatory-fha-loan-fees-increase-for-some-fall-for-others/#comments Fri, 18 Jul 2008 14:26:21 +0000 dgreen http://www.americanstreetblog.com/blog1/2008/07/18/mandatory-fha-loan-fees-increase-for-some-fall-for-others/

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For the first time in its history, the FHA changed its funding fees and mortgage insurance structure this week.  FHA-insured home loans are now subject to a risk-based pricing adjustment, as shown by the table above.

Because of risk-based pricing, FHA home loans are now more expensive for borrowers with less-than-ideal credit profiles, and less expensive borrowers with perfect ones.

Prior to the changes, most FHA borrowers paid an up-front fee of 1.500 percent, plus on-going annual mortgage insurance payments equal to one-half-percent on the amount borrowed.

FHA-insured mortgages have grown in popularity this year because, while the guidelines of other mortgage products have tightened, FHA program guidelines have remained loose.  FHA allows 3 percent downpayments on purchases, for example, and allows “cash out” refinances to 95 percent.

Fannie Mae and Freddie Mac do not.

(Image courtesy: FHA.gov)

]]> http://www.americanstreetblog.com/blog1/2008/07/18/mandatory-fha-loan-fees-increase-for-some-fall-for-others/feed/ Petrol or gasoline? Either way, it’s pricey http://www.americanstreetblog.com/blog1/2008/05/29/petrol-or-gasoline-either-way-its-pricey/ http://www.americanstreetblog.com/blog1/2008/05/29/petrol-or-gasoline-either-way-its-pricey/#comments Thu, 29 May 2008 20:57:23 +0000 lowusu http://www.americanstreetblog.com/blog1/2008/05/29/petrol-or-gasoline-either-way-its-pricey/ While American drivers groan over the price of gasoline soaring to $4 per gallon, the French are paying $8.67 per gallon of super, compared to $7.10 in January, 2007. A gallon of diesel in French gas stations averages $8.54, up from $5.35 just a year ago. In the U.K. diesel costs $11.50 per gallon, compared to around $3.90 in the U.S.  Across the European Union, the average cost of a gallon of gas runs about $8.70 - more than twice what Americans are shelling out to fill up. (Time.com 5/28/08)

house200euro.jpgAfter reading this article on time.com about the price of gas overseas it lets me know 2 things - it can always be worse, and God Bless America!

The same can be said about the Real Estate market, for some people the bubble has burst. While for others, it is time to take advantage of low rates and the abundance of homes for sale. This is especially true if you’re a first-time home buyer, it is time to get in the game!

Lloyd

]]> http://www.americanstreetblog.com/blog1/2008/05/29/petrol-or-gasoline-either-way-its-pricey/feed/ Good Credit: The financial Concierge http://www.americanstreetblog.com/blog1/2008/04/18/good-credit-the-financial-concierge/ http://www.americanstreetblog.com/blog1/2008/04/18/good-credit-the-financial-concierge/#comments Fri, 18 Apr 2008 14:38:10 +0000 jlopatin http://www.americanstreetblog.com/blog1/2008/04/18/good-credit-the-financial-concierge/ Good credit will basically roll out the red carpet and open the door to the bank for you as if you were the Great Gatsby himself. It’s your umbrella during this economic thunder storm, as you watch others get drenched in financial stress and discomfort. In order to stay as dry as possible, you must continuously maintain an above average credit score. FYI, in todays market that would be about 720! For some this is a simple task, but most find this very difficult to accomplish.

ConciergeHowever, those who do keep their credit flawless will enjoy a more pleasant financial journey. Whether you are refinancing your home or getting a family plan at a cell phone store, credit equals power. It gives you the advantage and rewards those who abide by the rules. You can truly save enormous amounts of money on your mortgage payments, credit cards, car loans, and even get that 5th phone on the family plan for your grandma.

Financial discipline is a skill that needs to be learned and mastered. Try keeping at least 2-4 active trade lines open (credit cards, mortgage, car loan), and try not to overspend by keeping the balances lower than 50% of you credit card limits. In addition, you can track your spending more efficiently on your credit card statements allowing you to save more every month. Credit will ultimately make life easier no matter what the economic status is. It’s definitely not too late to arm yourself with good credit, and it really doesn’t seem like anyone knows when this battle will end.

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