13SECSS
Club Sponsor
Hey guys. Happy new year to all of you. I try not to get on here and waste too much of everybody's time, but I do like the post directly about the mortgage market every few months or so. 2017 is definitely off to a strange start, I think a lot of uncertainty in the market is causing the rates to rise and unfortunately it does affect things when it comes to people borrowing money, as obviously money cost more when the rates go up. With that said, there is some exciting news. FHA just announced that as of January 27 2017 it will be lowering its monthly PMI insurance by 25%. In a nut shell, on a $200,000 loan this would save you $75 a month. It doesn't sound like a lot, but for every $10,000 that you borrow your payment goes up about $52 a month therefore if you were looking at a dream house that cost 225 but only feel comfortable with the payment of 200,000 FHA mortgage, that $225,000 house after the end of the month, would yield the same payment of $200,000 house today due to the decrease in monthly PMI insurance. These are one of the few things that I expect to put a little drive to the market as FHA has some more announcements coming next month and I'll keep everybody updated.
With the rising interest rates, a lot of people get upset as they were looking to refi in the past and we're leaning on the fence hoping the rate would come down, now that rates went up, they think their stuck in their FHA mortgage because they don't want to take a higher interest-rate. 9 out of 10, even an interest-rate a half a percent higher than what you may currently have now on an FHA loan, by switching to a conventional loan you're eliminating PMI and saving money each month, even if you don't have 20% equity. A lot of customers think that you have to have 20% equity in order to not have PMI on a conventional loan, that is completely untrue. I have products and programs that allow you to have as little as 5% equity in your home and eliminate PMI insurance which in some cases can save hundreds of dollars a month on your mortgage payment.
Lastly, with higher rates comes higher consumer confidence and equity in your property. Anyone who purchased between 2010 and 2016 should have A very decent amount of equity. Now would be the time to take a look at that and see if you could actually refi out of a 30 year and go down to a 20 year and actually have the same payment because we can aluminate PMI insurance.
As always, I appreciate everyone on here and I thank everyone for the business. Feel free to call me or email me seven days a week with any questions.
Thanks again guys.
With the rising interest rates, a lot of people get upset as they were looking to refi in the past and we're leaning on the fence hoping the rate would come down, now that rates went up, they think their stuck in their FHA mortgage because they don't want to take a higher interest-rate. 9 out of 10, even an interest-rate a half a percent higher than what you may currently have now on an FHA loan, by switching to a conventional loan you're eliminating PMI and saving money each month, even if you don't have 20% equity. A lot of customers think that you have to have 20% equity in order to not have PMI on a conventional loan, that is completely untrue. I have products and programs that allow you to have as little as 5% equity in your home and eliminate PMI insurance which in some cases can save hundreds of dollars a month on your mortgage payment.
Lastly, with higher rates comes higher consumer confidence and equity in your property. Anyone who purchased between 2010 and 2016 should have A very decent amount of equity. Now would be the time to take a look at that and see if you could actually refi out of a 30 year and go down to a 20 year and actually have the same payment because we can aluminate PMI insurance.
As always, I appreciate everyone on here and I thank everyone for the business. Feel free to call me or email me seven days a week with any questions.
Thanks again guys.
