Logan Utah Mortgages and Real Estate: February 2010

Everybody knows that there is a 30 year fixed rate and a 15 year fixed rate but most people are surprised when I tell them that they could also do a 10 year fixed rate.

I'm not talking about a 10 year ARM that is amortized over 30 years.  This is actually a 10 year fixed rate amortized for 10 years and paid off in 10 years.

This is a loan program for those that hate debt and want some forced discipline to pay the loan off extremely quick. The interest rates on this program are great also.

Today the 10 year fixed rate is 4.0% (APR 4.122%).

This could be a great loan for somebody that only has 10 years left on their 30 year mortgage but is paying a much higher interest rate.

If you are interested in exploring what the 10 year mortgage can do for you, call me today at 435-755-2177. I look forward to exceeding your expectations.

For those people that are thinking of buying a home in Logan, Utah with an FHA loan, there is a change occuring on April 5th that will make your FHA loan a tad bit more expensive.

Effective on all FHA case #'s assigned on and after April 5th, the upfront mortgage insurance premium is increasing from 1.75% to 2.25%. On a $100,000 mortgage, that is an extra $500 dollars on your mortgage.

The FHA upfront mortgage insurance is the only closing cost that can be rolled into the mortgage and this won't change but the increase will mean that your monthly payments will be a little bit higher than with the previous 1.75% Upfront fee.

The president of HUD said that this change is necessary to help FHA shore up some of the losses that they have incurred due to foreclosures.

Personally I don't think that this will affect the market very much, if at all, and FHA will still be the best option for many borrowers.

Although the homes in Logan, Utah, Cache Valley and surrounding areas haven't depreciated as much as most of the nation (see California and Florida!) I think most real estate agents would agree with me that most every home has depreciated a little. One of the consequences of this depreciation is that it has made it difficult for some borrowers to refinance.

A borrower might have amazing credit and stable employment but if they have lost much of the equity that they once had in their home it can make it difficult for them to refinance, because the bank uses the home as collateral for the loan. However, there is hope with a program that the government has sponsored called "Making Home Affordable" or the Fannie Mae and Freddie Mac Relief Refinance Program.

This program works just like a conventional loan program except it allows for borrowers to refinance even if they have lost all the equity that they had in their homes, up to 105% LTV. This is great news for borrowers that want to take advantage of the lower interest rates right now.

To be eligible for this program...

    1. Your current mortgage must be owned by Freddie Mac or Fannie Mae. Find out here!
     2. Your loan can't currently have mortgage insurance.
     3. The balance on your mortgage can't be more than 105% of the value of your home.
   

My company is currently originating a lot of loans with this loan program. If you live in Logan, Utah, Cache Valley, or surrounding areas and your current loan is serviced by Bank of America, Wells Fargo, Flagstar, Chase, or Citimortgage, there is a good chance that I can help you refinance to get a lower rate.  Give me a call today at 435-755-2177 for a free consultation.