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Tag: insurance

Why Home Insurance Rates Should Not Soar After Hurricane Irene

Why Home Insurance Rates Should Not Soar After Hurricane Irene

The good news regarding Hurricane Irene is that it did less damage than many forecasters initially suspected. The bad news is that it did a lot of damage, an estimated $12 billion to $13 billion. Given such huge losses should the money you pay for homeowner’s insurance go up? A firm “no” comes from Joanne […]

Posted in: News
How The FHA Is Sinking Mortgage Borrowers

How The FHA Is Sinking Mortgage Borrowers

Millions of people have financed and refinanced with FHA mortgages, but what used to be a financial safe-haven is increasingly not-so-attractive. Higher costs and gotcha clauses are making the FHA less unique and more expensive every day. Don’t believe it? Let’s look at some facts: Lender Fees With most forms of mortgage financing lenders have […]

Posted in: News
Less FHA Mortgage Loan Demand Undermines American Home Prices

Less FHA Mortgage Loan Demand Undermines American Home Prices

A small change in FHA guidelines has now hit the market and the result has been both immediate and devastating. “Purchase applications fell last week, driven primarily by a sharp decrease in government purchase applications as new, higher FHA premiums went into effect,” said Michael Fratantoni, the Mortgage Bankers Association Vice President of Research and […]

Posted in: Mortgages
Can Bi-Weekly Loans Stop Mortgage Foreclosures?

Can Bi-Weekly Loans Stop Mortgage Foreclosures?

If you have a bi-weekly mortgage will your payments be more in line with your paycheck, thus lowering your costs and reducing the chance for foreclosure? Imagine that a household has two wage-earners who take in $100,000 per year. Lenders allow them to finance with monthly payments equal to 31 percent of their income or […]

Posted in: Mortgages
Up-Front Reverse Mortgage Fee Now Less Than An Oil Change

Up-Front Reverse Mortgage Fee Now Less Than An Oil Change

HUD is out with its newly-minted HECM Saver reverse mortgage and the program has one stunning feature: It requires virtually no FHA insurance premium up front. Reverse mortgages are often in the news, an unusual loan program intended for home owners age 62 and above. In essence, a reverse mortgage is a huge, negatively amortizing […]

Posted in: Mortgages
How The VA Funding Fee Really Works

How The VA Funding Fee Really Works

VA loans are built to minimize the financial impact on military members who qualify for the program. Credit and income requirements are generally more lenient than conventional loans and sellers are allowed to pay a sizable portion of closing costs and concessions. On top of that, the Veterans Administrations caps what veterans can pay in […]

Posted in: Mortgages
Foreclosure Taxes

Foreclosure Taxes

We usually think of foreclosures as the end product of not paying a mortgage. But in a somewhat weird way it’s also possible to be foreclosed for other reasons. For instance, in many communities the water company is actually a governmental agency. Don’t pay your water bill and there can be a lien against the […]

Posted in: Foreclosures
How To Read The HUD-1

How To Read The HUD-1

Since January 1st, 2010, all real estate transactions have been settled using a new HUD-1. The HUD-1 is a standardized form which allows real estate buyers and sellers to clearly understand the costs of their transaction. The original HUD-1 was developed as a by-product of the Real Estate Settlement and Procedures Act of 1974 — […]

Posted in: Closing
Can You Avoid Foreclosure With A “Second Look”?

Can You Avoid Foreclosure With A “Second Look”?

We usually think of foreclosures as battles between lenders and borrowers, but in many cases there is actually a third party in the process, mortgage insurance companies. Mortgage insurance companies have a big stake in bad times because when insured borrowers fail it’s the MI companies that can face big claims. The good news is […]

Posted in: Foreclosures
How Do We Get Rid of the FHA Mortgage Insurance Premium?

How Do We Get Rid of the FHA Mortgage Insurance Premium?

Question: I bought a home with FHA financing. We have a monthly insurance premium (MIP) with each payment. How do we get rid of this cost? Answer: When you bought your home you purchased with little money up front, perhaps 3.5 percent down. This means a lender put up as much as 96.5 percent of […]

Posted in: Mortgages