Borrowers who want to get a mortgage insured by the Federal Housing Administration should act quickly to avoid changes the agency is making to shore up its faltering insurance fund.
The U.S. Department of Housing and Administration announced the changes on Wednesday but didn't announce the effective dates until Thursday.
Here's the timing: FHA will raise the annual mortgage insurance premium on most loans that have a case number starting April 1 or later. To get a case number before the April 1 deadline and avoid the increase, borrowers should apply with a lender no later than March 25, as indicated by lending professionals
On most FHA loans, the annual premium will increase by 0.10 percentage point, or $100 per year for each $100,000 in loan amount.
For loans greater than $625,000 with a term longer than 15 years, the increase will be 0.05 percentage point, or $50 per year for each $100,000 in loan amount.
The premium itself varies depending on the loan size, term and loan-to-value ratio, but here's an example:
For a $500,000, 30-year loan with a loan-to-value ratio greater than 95 percent, the new premium will be 1.35 percent, or $6,750 per year, up from 1.25 percent, or $6,250 per year. On a monthly basis, the premium increase amounts to about $42.
For a chart showing premiums increases for various loan types, check out Hebron's blog at tinyurl.com/as4xsqb. These premium increases do not apply if a borrower refinances an existing FHA loan that was endorsed on or before May 31, 2009, into a new FHA loan under the streamline refinancing program.
FHA is not changing the one-time premium borrowers pay up front; it remains at 1.75 percent of the loan amount.
In a potentially bigger hit, FHA borrowers will have to continue paying annual mortgage insurance premiums for a longer period of time - in most cases for the life of the loan.
This change will apply to new loans with case numbers starting June 3. To avoid this change, borrowers should try to apply by May 24.
In the past, FHA automatically canceled mortgage insurance on most loans when a borrower, anytime after five years, had made enough payments to reduce the balance to 78 percent of the original loan amount.
A borrower taking out a 30-year loan with 10 percent down could usually eliminate mortgage insurance after about six years making normal payments, or after five years if they made extra principal payments, Hebron says.
(If the original loan term was 15 years or less, the five-year rule didn't apply; FHA would cancel the insurance when the balance dropped to 78 percent.)
In the future, if the borrower starts off with a loan-to-value ratio above 90 percent, FHA will collect the premium for the life of the loan. If the original ratio is between 78 and 90 percent, FHA will cancel the premium if the balance drops below 78 percent of the original loan amount anytime after 11 years.
The year-end 2012 housing data released by MIBOR today shows a significant and welcome increase in closed and pending sales in central Indiana compared to 2011. The number of closed sales in central Indiana increased 18.5 percent in 2012 over 2011. Closed sales rose 26.9 percent in the three months ending in December 2012 when compared to the same three-month period last year. In December alone, closed sales increased by 13.4 percent.
Pending sales increased by 23 percent in the three months ending in December and 16.4 percent in the one-month comparison. For the year, pending sales increased 14.9 percent.
Gains in activity were seen month after month through 2012 and prices remained stable. Median sales price for the year increased 3.6 percent over 2011. Average sales rose 3.3 percent for the year. Inventory stabilized to 7.4 months.
Along with the Monthly Indicators Report, a one-page report of each county within the service area is also provided. In total, these data sets are intended to be a snapshot of the market, providing historical comparisons whenever possible. The data was pulled from the BLC® listing service on January 17. To download the Monthly Indicators report, click here. To view the one-page county reports, click here. Please note, due to the length of the reports, it may take a few minutes to download.
A one- and three-month review of local housing data reveals an increase in the number of closed sales in Hamilton County, according to a report from the Metropolitan Indianapolis Board of REALTORS® (MIBOR).
During May 2012 to July 2012, the number of closed sales in Hamilton County increased by 28.1 percent when compared to the same months in 2011. Closed sales increased by 30 percent in the July-only comparison within Hamilton County.
Median sales prices in the county increased to $205,250 during May 2012 to July 2012, a 0.1 percent increase.
During the one-month period of July 2012, median sales prices decreased by 2.5 percent to $214,500. The average sales price of homes in Hamilton County decreased by 4.1 percent to $244,770 when compared to the same three-month period in 2011 and decreased by 5 percent in the one-month comparison to $249,946.
Additional key central Indiana findings:
- Pending sales increased by 18.4 percent in July.
- Months of supply decreased more than 24 percent to 7.8 months in July.
- Closed sales increased by 18.4 percent in July.
IMPORTANT TAX FILING DEADLINE
In an effort to fight property tax fraud, Indiana lawmakers passed legislation in 2009 requiring all homeowners to file a simple form with their county auditor verifying their eligibility for the state’s homestead property tax deduction on their primary residence.
If you are eligible for the homestead deduction and haven’t yet submitted the verification form, there is still time, but you need to act soon. The law sets a deadline of Jan. 1, 2013, for the form to be submitted to your county auditor. Failure to do so could result in the loss of your homestead deduction, which would increase your property tax bill significantly.
The 2009 legislation required verification forms to be sent out with property tax statements in 2010, 2011 and 2012. In most cases, the form was printed on pink paper. To verify whether or not you’ve already filed the form, contact your county auditor’s office. Contact information for local officials in all 92 Indiana counties can be found here.
See details about the Legislation.
This morning, the Today Show announced that Carmel, IN was named the #1 best place to live according to a survey conducted. Carmel, Indiana also tops Money Magazine's 2012 list of best places to live. The list factors in quality of life, home prices, crime statistics, convenient access to amenities and more. A great place to invest in real estate!
Baldwin Companies is offering the following benefits to new agents:
- 75% Commission on transactions that are agent generated.
- 60% Commission on transactions that are company generated.
- 3-5 buyer leads per day.
- Opportunity to have floor time if desired.
- No per transaction fees.
No desk fees.
Agents work from home, or can man the office on a rotational basis if desired.
- Agents pay for their own Metropolitan Indianapolis Board of Realtors (MIBOR) fees.
- Agents pay for their own E&O insurance.
Contact Scott at 317.645.4444, Ext. 201 for details or to set up an interview.
We are in desperate need of an experienced residential agent to work in the Baldwin Companies residential arm to field incoming calls, referrals, and e-leads that exceed our current capabilities to service. We pay 60% on closed transactions that originate from leads we provide, 75% on self generated business, and charge no desk fees or other hidden fees. Agents pay their own E&O and MIBOR fees. For this agent, we are providing a specific desk in the office but need for them to be able to field company generated leads that are coming in, although working self-generated transactions is o.k. as well. If you aren't brand new, have a respectable number of transactions under your belt, are comfortable showing homes, taking listings, doing CMA's, and calling warm leads, please contact Scott Baldwin to talk about filling this position.
MIBOR publishes BLC home statistics monthly. They can be viewed by the public. To see April's statistics, click here.
Housing construction increased 4.4% in April. Construction has been helped by the home-buyer tax credits but it remains to be seen how the expiration of these credits will affect construction going forward.
To read more on the IBJ article, click here.
The National Association of Realtors reported that homes sales rose 7.6%, to a seasonally adjusted annual rate of 5.77 million, which exceeded the 5.63 units experts had predicted. The deadline for first time home buyer tax credit was largely responsible for this boost in sales for April.
Read more on this here.
Thanks to favorable interest rates and low prices, housing has maintained its highest level of affordability for well over a year. Over 70% of all homes sold in the first quarter of 2010 were affordable to families earning the national median income. of $63,800.
To read more from the National Association of Home Builders, please click here.
Fishers, IN was once again recognized as one of the best, affordable places to live. Click here to read more about the write up in Business Week.
MIBOR members have reported that some of their listings have been the subject of a fraudulent ad placed on Craigslist or other websites. The scam will be offering the home "For Rent". The scammer may ask upfront for credit information or a deposit. DO NOT give away your credit card or banking information without securing the payment through proper measures.
Please read more on how you can protect yourselves and your listings here.
In central Indiana, homes sales and average selling prices are showing increases from 2009. This could indicate a rebound in the housing market.
Click here for more.
MIBOR publishes BLC statistics monthly. They can be viewed by the public. March's stats are available here: http://tinyurl.com/BLCHomeStatsMarch
The 2009 Local Profile of Home Buyers and Sellers is now available to MIBOR members. The report is an “oversample” of the nationwide effort that NAR engages in annually. Each year, NAR conducts an extensive survey of individuals who have bought or sold in the last 12 months. In this case, the report includes activity from July 2008 through June 2009. MIBOR then engages NAR to sample a greater number of consumers specifically within our service area in order to develop a study that reveals more about your exact customer here at home. NAR recently made this effort more affordable to associations through its “Right Tools. Right Now. ” campaign.
Click here to see a summary of details.
Click here for the entire report.
New HUD-1 and Good Faith Estimates to be implemented by Jan. 1, 2010
New RESPA Rules from the U.S Department of Housing and Urban Development (HUD) will take full effect on January 1, 2010. HUD is requiring that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a newHUD-1 settlement statement. To find answers to frequently asked questions, check out the New RESPA Rule FAQs by clicking here. For a HUD-1 form, click here and for a Good Faith Estimate form, click here. Need additional information? Check out highlights and additional links to information at: http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm.
RetailTrafficMag.com Dec 1, 2009 11:21 AM
The Federal Deposit Insurance Corporation’s (FDIC) policy recommendations for banks dealing with troubled commercial real estate loans appear to be easing the burden on borrowers facing falling property values.
Read entire story here.
This is a fascinating look at how the recession has played out over the past couple of years across the United States. Fortunately, the end is near and employment will start to stabilize in 2010. The recovery of the real estate market is on the way. Take a look when you get a moment.
Real Estate Barcamp Indiana is essentially a one-day social media marketing conference for the Real Estate industry. The concept is to create a one day, FREE event, full of conversations that allows participants to learn how to implement social media and real estate technologies to grow their real estate business. BarCamp Indiana will give you a venue to learn, create, & share new and innovative ideas with a talented group of real estate and industry realated professionals.
Register today for Free!
Did you know that the U.S. Department of Housing and Urban Development sells their foreclosed homes with great programs, some of them for only $100 down for buyers who qualify using FHA financing. Find out today if you can qualify for FHA financing and search for HUD homes. Baldwin Brothers is a HUD Registered Agent can assist you in the process, but you can look at the homes online at the link below.
From MIBOR: A review of BLC® listing service market data reveals that 6,929 homes sold in the three-month period ending in October, 2009. That represents a 2 percent increase from the same three-month period in 2008 – the first positive increase since MIBOR began tracking by rolling quarters in February of 2008. Sales price, both average and median were also encouraging, with average sales price up 1 percent and median up 2 percent. Total sales volume for the market was up 3 percent. New listings decreased 6 percent putting the average months of supply at 8.3 – down from last year’s 9.9.
Here's an interesting piece off of CNBC today.
"Faced with sluggish progress in its foreclosure-prevention effort, the Obama administration will spend the coming weeks cracking down on mortgage companies that aren't doing enough to help borrowers at risk of losing their homes."
Today's average mortgage rates across the country
30 Year Fixed 4.97%
15 Year Fixed 4.48%
1 Year ARM 3.92%
30 Year Fixed Jumbo 5.89%
5/1 ARM 4.24%
3/1 ARM 4.75%
(U.S. Averages / source Bankrate.com)
Last week marked the official start of the 2010 legislative session in the Indiana General Assembly. Tuesday was "Organization Day," the official start of the legislature. While mostly a ceremonial day, legislators wasted no time staking positions on several priority issues - one of which are the caps on property taxes.
The property tax caps began to phase in this year and move to their full amount next year at 1 percent of assessed value for residential property, 2 percent for rental property and 3 percent for businesses. The intent though is to make those changes permanent.
There's a downsizing trend under way at many small businesses: Moving to smaller offices because of shrinking staffs and as more workers telecommute.
Owners say they're saving money on real estate, office furniture and other expenses by letting employees work from home or by using independent contractors who don't work on-site. And those who have cut staffers obviously don't need to provide space for them.
Read the entire text of the article here.
NAR released its 2009 Profile of Home Buyers and Sellers last week at the 2009 Conference & Expo in San Diego. Among the key findings - The difficulty of for‐sale‐by‐owner transactions increased with challenging market conditions over the past year. The level of FSBOs was a record low 11 percent, down from 13 percent in 2008. The share of homes sold without professional representation has trended down since reaching a cyclical peak of 18 percent in 1997. The most difficult tasks reported by unrepresented sellers are preparing and fixing the home for sale, getting the right price, understanding and performing paperwork, and selling within the planned length of time. For the full text of the article, please visit the link below:
Congress has extended and expanded the homebuyer tax credit. See features and comparisons here: http://tinyurl.com/ykmn576
Over the last seven years, contributions from MIBOR members to the REALTOR® Foundation have combined to grant more than $500,000 to the homeless of central Indiana. Last Wednesday, the REALTOR® Foundation announced the latest round of funding that will be dispersed to non-profit service providers that supply critical, emergency and transitional housing for central Indiana’s homeless for the 2010 funding cycle.
Originally part of the American Recovery and Reinvestment Act enacted in February of 2009, the First-Time Home Buyer tax credit was extended and expanded less than a month before it was set to expire, thus making the original expiration date invalid. All new pieces of the legislation took effect Nov. 7, 2009 when President Obama signed the bill.
The first step in reputation management is preemptive: Think twice before putting your personal information online. Remember that although something might be appropriate for the context in which you're publishing it, search engines can make it very easy to find that information later, out of context, including by people who don't normally visit the site where you originally posted it. Translation: don't assume that just because your mom doesn't read your blog, she'll never see that post about the new tattoo you're hiding from her.
Read the entire article on Google's official blog here:
If you are looking to buy a home in Hamilton County, Indiana, and are interested in buying a foreclosed home, you may qualify for a grant administered through Hamilton County Area Neighborhood Development (HAND) if you make less than $65,400 (2 in household) or $73,560 (3 in household). Buyers can get up to $30,000 towards down payment, closing costs, and home rehab.