JANUARY 28TH, 2010
By MATT STEINMETZ
I heard the Tavern on the Green in Central Park is or has just closed. Here is a picture I took while there last September. Many people remember this place by the manicured animal shapes like this one.
The Fed says that the Fed’s Mortgage Backed Securities purchase program (see previous post), will end March 31st. Overall this news was taken bad as rates got a little worse yesterday.
Also in a previous post, I commented on FHA changes. Well it looks like the date for the increase in up front mortgage insurance (UFMIP) is April 5th. The increase, just days after the Fed stops buying MBS’s, takes the UFMIP from 1.75% of the loan amount to 2.25%. If you look at a $300,000 purchase price, and use FHA with the minimum 3.5% down, after April 5th your UFMIP will be $1,582 higher! This is can be a problem for a lot of people. I know, because I see how people struggle to save just enough for a down payment and closing costs.
It is true that UFMIP can be, and usually is financed into the loan amount, how ever that means higher payments. While the impact to payments is low, those buyers who are already on the border for qualifying will be affected.
At some point the cap for seller credits will come into play as well. Currently a seller can credit 6%, but FHA will shrink that to 3% sometime soon.
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Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-A2 Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639
Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online
FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages
DECEMBER 23RD, 2009
By MATT STEINMETZ
January 1st marks the start of a new year, new decade and among other things the start of a new good faith estimate. New laws require lenders to use the 2010 version of this form. Created to allow easier shopping for consumers, this form is 3 pages instead of 1 and does not even show the consumer how much cash is needed to close, or any credits that may be given from Realtors, sellers or the lender. This rules are very strict as to when it must be presented to the borrower and to what fees can change after it has been given to the borrower. In short, it is a disaster for lenders and will result in higher fees, as lenders try to understand the changes and fear they will be stuck footing the bill of estimated 3rd party fees that change or were not disclosed properly at the beginning.
For example, let’s say a lender put a $400 fee for an appraisal and later that fee is really $450. Basically the lender is stuck paying the difference as they had only disclosed $400. Adding up the amount of fees that this can happen to means the lender could potentially be responsible for thousands. I don’t need to tell you that lenders will not want to do this and therefore will be padding fees from the start. Expect this as a new norm, at least until several loans are under the belt and lenders get used to the changes.
All lenders are undergoing training on this form and I have as well, with a 2nd session next week. Though the above is already a conclusion taken by most lenders. Leave it to the Government to take a 1 page form and turn it into a 3 page form, in order to make it easier, but only to make it more convoluted. *sense the sarcasm*
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Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-A2 Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
msteinmetz@envoymtg.com
Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Apply for a loan online
FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages
SEPTEMBER 9TH, 2009
By MATT STEINMETZ
The latest job report came out last week. It appears all of the positive news that has been all over the web and news channels, is premature. 9.7% unemployment is the highest in 26 years.
Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online
FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficent Mortgages
JULY 8TH, 2009
By MATT STEINMETZ
Vice President Joe Biden said the current administration may have miscalculated the jobless problem facing America, as to how bad it would be. Another stimulus plan would mean more Treasury auctions. You know from my previous posts that Treasury auctions can take money away from bonds and increase mortgage rates. A new plan would also cause inflationary problems which would also mean higher rates.
Many Banks that held off on foreclosing on delinquent mortgages are now planning to move forward. A lot of banks held off because they signed up for Obama’s Home Stability Plan, but reports show that a large amount of the loans that have been modified by the lender are still delinquent. People are still not paying their mortgages, even after modifications go through. Not only does this clog up the modification departments for those who want help and would pay, but it tells the lenders the pograms don’t work and perhaps foreclosure is the way to go. Either way, a new wave of foreclosures is on the horizon and this will depress home values further. This is good news if you are in the market to buy.
Matt Steinmetz
Envoy Mortgage
JULY 3RD, 2009
By MATT STEINMETZ
Here is a link to the flyer
New $8,000 Tax Credit for First-time Home Buyers- is set to end soon!
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new
$8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT
have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax
you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be
claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn’t owned a home in the 3 years prior to a purchase of a primary residence may qualify
for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer’s
modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a
joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married
taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you
or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer,
cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as
having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a
typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home
first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having
already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use
form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate.
Add to that this $8,000 gift from the government, and renting a home just doesn’t make much sense.
If you or someone you know is ready to stop paying the landlord’s mortgage and start building equity in your own home, give
us a call. We’ll run the numbers and see what makes sense for your individual financial needs.
Matt Steinmetz
Envoy Mortgage
