July 15th, 2015 7:38 AM by Dale DiGennaro
There are many refinancing options available today, and with more and more people choosing to purchase an FHA loan for their mortgage, an FHA streamline refinancing option orFHA insured Reverse Mortgage(for those over 62) is an important one to consider, whether you have an FHA loan or know someone who does or someone that may be a perfect candidate!An FHA loan is a mortgage insured by the Federal Housing Administration. The Federal Housing Administration was originally created in 1934 to increase home construction, even though it does not plan or build houses itself. It also doesn't make loans, but rather insures loans from private lenders to prevent loss of interest. The borrower must go through an FHA-approved lender, who will then assess the borrower for potential risk. FHA loans allow lower and middle-income families and first-time homebuyers to get better loans for less money up front.It will also allow for those over 62 years old to be able to get additional monthly income while eliminating their monthly mortgage payment.Call us at707-252-2700for more information on that program.For more information from HUD on FHA insured Reverse mortgages......click here.If your mortgage is FHA-insured and you're current on your payments, you can check with your lender to see if you're eligible for an FHA Streamline Refinance. The refinance will need to result in lowering your interest rate and no cash can be taken out in this particular refinancing process. One of the benefits of this refinance is that there is no new appraisal needed for an FHA Streamline. Instead, the FHA allows the lender to use your original purchase price as your home's current value. However, if you do refinance, you will have to pay upfront mortgage insurance again, and in some cases may have to pay annual premiums. The FHA will also not allow you to finance your closing cost into the loan balance, so you will have to discuss your options with the lender you choose.If you are considering a reverse mortgage or would like more details...... goHERE for FAQ's!
Mortgage Time
Mortgage Market News for the week ending July 10, 2015
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DaleDiGennaroOwner | NMLS: 298353 |966783
Custom Lending Group, Inc.Co. NMLS: 845079 | 944064
Office: 707.252.2700 - Ext. 109•Cell: 707.738.0878Fax: 707.252.1319
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China and Greece
Over the past week, U.S. financial markets were influenced primarily by events in China and Greece. Concerns about slower growth in China and increased uncertainty about Greece were both favorable for mortgage rates, which ended the week a little lower.
China is the second largest economy in the world, and it is growing at a much more rapid pace than the U.S. or Europe. This means that China is responsible for a large portion of global economic growth. Recently, investors have become more concerned that the pace of China's economic growth may beslowingmore quickly than expected. Slower global growth reduces expectations for future inflation, which is positive for mortgage rates.
The outcome ofSunday'sGreek referendum was not the expected result. The Greeks votedagainstaccepting the reform measures demanded by creditors in return for additional aid. Greece already is unable to repay its debts, and another large payment is due onJuly 20th. Economic conditions in Greece are worsening. Greek officials and creditors are continuing to negotiate, but it is still not certain whether a deal will be reached. Without a bailout, Greece may be forced to exit the European Union. The uncertainty has increased demand for relatively safer assets, including U.S. mortgage-backed securities (MBS).
Looking ahead, investors will be watching for progress in the Greek bailout negotiations and for clues about the pace of economic growth in China. In the U.S., theRetail Salesreport will be released on Tuesday. Retail sales account for roughly 70% of economic activity, making this one of the most important reports each month. Industrial Production, another indicator of economic activity, will be releasedon Wednesday. Housing Starts and the Consumer Price Index (CPI) will come outon Friday. CPI looks at the price change for finished goods which are sold to consumers.
Barbeque season is in full swing. In order to have the perfect cookout, you have to plan ahead and plan for a few surprises. Use these tips and ideas to make your next backyard party one to remember:
DaleDiGennaro•Custom Lending Group•(707) 252-2700•dale@clgroup.net