Monthly Archives: January 2017

Tax Refund This Year? Use it for a Down Payment!

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Key takeaways

  • Tax refunds could be a substantial influx of cash – use it wisely
  • A tax refund could cover your whole down payment
  • Funds to close are often overlooked until you have to pay for them
  • Deposit the refund and keep it there to build your financial strength

With good planning, a tax refund could cover the whole down payment for a home purchase!

If you’re looking to buy a home at the start of the year, there’s good reason to hang on to your tax refund. This is the time of year when potential homebuyers have the most funds at their disposal, and that extra money comes in handy when making a down payment on a home, financing funds to close, or building financial strength. So don’t go on a spending spree just yet! Continue reading →

Plans for FHA Mortgage Insurance Rate Cut “Suspended Indefinitely”

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Cuts could have saved eligible homeowners an average $500 annually

We got some disheartening news toward the end of the business day last Friday. The FHA Mortgage Insurance Premiums (MIP) reduction scheduled to take effect on mortgages with close/disbursement dates on or after January 27 have been “suspended indefinitely” according to the Department of Housing and Urban Development (HUD). The FHA mortgage insurance rate cut would have reduced annual premiums by a quarter (1/4) of a percent, making it easier for realtors to expand access. Continue reading →

Why a Pre-approval Meeting Makes Sense

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Key takeaways

  • Being pre-qualified is NOT the same thing as pre-approved
  • Home buying starts in the lender’s office
  • There are ways to improve your chances of approval
  • Reliable pre-approvals take longer than an hour

Pre-approval: Your First Step to the American Dream

Alexander Graham Bell once said, “Before anything else, preparation is the key to success.” Buying a home is a huge undertaking; and preparation and information to make a successful investment. That preparation starts with getting pre-approved for a mortgage loan…and a pre-approval meeting with a mortgage lender is a great way to begin the process. Continue reading →

FHA Reduces Annual MIP for Some Mortgages

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MIP Reduction Expands Credit Access for Homebuyers

Big news out of the Federal Housing Administration this week. Effective for mortgages with close/disbursement dates on or after Jan. 27, 2017, the FHA has reduced the Annual Mortgage Insurance Premiums (MIP).

For borrowers: It essentially reduces the annual premiums they will pay by a quarter (1/4) of a percent. U.S. Housing and Urban Development Secretary, Julián Castro said that these new rates will save new FHA-insured home owners an average of $500 in 2017.

“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” Castro said.

Continue reading →