FHA has announced that it will increase the annual Mortgage Insurance Premium (MIP) for the second time in six months.  The last increase was in Oct of 2010 and resulted in a $58 monthly increase in the payment amount on a $200,000 loan amount.  In October the up front portion of MIP decreased by about $2,500 for the same $200,000 mortgage. No decrease in up front premium this time … [Read more...]

Rising interest rates could be the wild card that spoils your chance to get a good deal on your next home purchase.  Getting the absolute lowest price on a new home is important, but getting a low payment and total interest paid should be considered as well. I've heard a few potential home buyers say they are waiting for the market to hit bottom.  Although that sounds like a noble cause, in … [Read more...]

FHA will increase its Mortgage Insurance Premium (MIP) rates effective Oct 4, 2010.  Actually the monthly FHA MIP rates will increase while the upfront premium will decrease.  More on the specifics in a moment. Okay, let's get the boring stuff out of the way first.  Congress recently passed HR 5891 which gives the FHA authority to adjust MIP rates. Basically FHA can increase the cap on … [Read more...]

When buying a home one very important component of the decision making process for most people is the mortgage rate.  Lower rates mean you can afford more house for your money.  As rates increase, typically home buyers must scale back their expectations and settle for less size and/or amenities in their home.  Some home buyers are shut out of the market altogether as rates continue to … [Read more...]

To say that things have changed in the mortgage business would be a huge understatement.  Qualifying is more challenging, down payment requirements have changed, and sources of income that once were allowed now are not.  The rules have changed and it seems new guidelines continue to be put in place almost every month. Because of new mortgage loan underwriting guidelines, there is now more … [Read more...]

It doesn't matter if you are relocating to Raleigh, Cary or Wake Forest and have bought many homes in the past, or if you are a local and are buying your first home.  Getting the house you want, on your terms, takes careful planning and a time tested and proven strategy. Pre-approval for your mortgage is a critical component of the winning strategy of all successful home buyers.  Let's take a … [Read more...]