Archives for June 2012

Hammered with HARP 2.0 Offers from Lenders You Don’t Know?

I received this email from one of my readers:

"My mailbox is being bombarded with out of state Harp 2 "pre-approved" loan offers and I did call one of them and they talked me into running a credit report and when I found out their fees for the loan I didn't call them back and told them I had to think about it. I'm a not sure if this is a scam or not so I thought I would check locally…"

The Home Affordable Refinance Program (HARP aka HARP 2.0) has created a refi boom for mortgage originators. Many large banks are now telling their clients it may take up to three months to process their refinances due to the heavy volumes that are being experienced. Some banks have so much business that they're turning away clients just because they have private mortgage insurance or LPMI with their existing mortgage. NOTE: Our company is closing HARP loans and accepting HARP refinance applications with existing pmi and lpmi for properties located in Washington state.

HARP 2.0 has created a great opportunity for mortgage originators and companies to buy leads. I've always scratched my head at why a mortgage originator or mortgage company would have to buy leads. You have to wonder how their service is if they do not have enough business by clients who return to them for their HARP refinance. Especially if the company is out of state – is their business so bad they have to go out of state to find consumers who have never heard of them?

I would never work with a non-Washington based mortgage originator or company who has to buy leads in order to get a loan. However, should you decide to, please check the NMLS to make sure the company and mortgage originator are licensed to do business in Washington State.  The solicitations you're receiving from these out-of-state lenders must disclose the license numbers for the company. 

Google the company and the mortgage originator to learn more about them. Should you decide to proceed with someone you're about to spend several weeks with while your refinance is in process, you might want to check their credentials first.

If you are considering buying or refinancing a home located anywhere in the state of Washington, I'm happy to help you. I've been originating mortgages at Mortgage Master Service Corporation since April 2000 and I've never paid for a "lead". My business is completely referral, returning clients and those who find me from reading my blog. Our local mortgage company located in King County has been family owned and operated since 1976. 

Just one more week for higher and lower FHA mortgage insurance premiums

A week from today, on June 11, 2012, HUD has more changes scheduled for FHA mortgage insurance premiums. I've been sharing this news with you here on my blog.

Let's start with the higher premiums. If you are considering an FHA high balance (also known as an FHA jumbo) mortgage, if possible, you want to obtain your FHA case number as soon as possible.  Starting next week, effective on case numbers obtained on or after June 11, 2012, FHA annual mortgage insurance premiums for high balance loans will go up an additional 0.25%.  FHA annual mortgage insurance is paid monthly.

In the greater Seattle area, this will impact FHA loans from $417,001 to $567,500.

I have more about the increase to the FHA mortgage insurance premiums on this earlier post.

If you are buying a home with utilizing an FHA insured mortgage – make sure you get your case number pronto.  This also implies to you if you're doing a rate-term FHA refinance (not an FHA streamline) or an FHA streamline refinance that was endorsed after June 1, 2009.  

This is a good segue to the reduced premiums that take effect next week…

HUD has dramatically reduced FHA mortgage insurance premiums on loans that were endorsed prior to June 1, 2009.  An FHA mortgage is "endorsed" after closing – sometimes many weeks after.  It's possible your FHA mortgage closed in May 2009 and was not endorsed until after June 1, 2009, in which case, your loan would not qualify for the reduced mortgage insurance premiums.

If your FHA mortgage was endorsed prior to June 1, 2009, your eligible for greatly reduced MI rates.  HUD has reduced the upfront mortgage insurance premium to 0.01% and the annual mortgage insurance premium to 0.55%.  It's a significant savings, especially when you factor in today's extremely low mortgage rates.  

The reduced FHA mortgage insurance premiums are available for FHA streamlined refinances with case numbers obtained on or after June 11, 2012.  Guess what?  You do not need to wait until June 11, 2012 to start your FHA streamlined refinance.  We are accepting mortgage applications now for FHA streamlined refinances as long as your home is located in Washington state.  FHA streamlined refinances do not require an appraisal so it's okay if your home has lost value.

I have been originating FHA loans since April 2000 at Mortgage Master Service Corporation. If your home is located in Washington State, I'm happy to help you with your mortgage. Click here if you would like me to provide you with a mortgage rate quote for your Washington home.