The death of 100% mortgages

We got an email today stating that after March 1, the PMI company will no longer insure over 97.01%.. What that means to the consumer is the only way you can get an 100% mortgage is if you can find a company to do a 80% first and a 20% second (80/20 loan). That is not likely in our market right now. Very few if any banks are doing a 100% loans any more. So if you are thinking of buying a home this year, start saving money. You will either need to borrow 3% from a relative or have 3% of the purchase price in your savings account. FHA loans may become very popular. For more on credit scores, mortgages, buying foreclosures, FSBO's, negotiating tips, and Michigan real estate go to my website www.RussRavary.com

FHA Refinancing

If you have a FHA mortgage you may still be able to refinance even though your home value has fallen. FHA does streamline refinances. Which means that you may be able to refinance your home without getting an appraisal. What you need to have is good credit for the last year. You may be able to have a few credit blemishes. Take the time and see a mortgage person or Loan officer to see if you qualify.

Too many people assume they can not refi. Take the time and go to a mortgage broker. They usually don't charge to review your situation. The biggest thing is don't be sucked into a higher rate or higher payment. Do not pay high fees or an application fee. There is no sense in giving somebody an application fee if it can not be done. There are many lenders that do not charge an application fee. You can find out whether you can refinance without paying a fee.

There are many options that may be available to you. One that many people are not taking advantage of is calling your existing lender. Call your existing lender to see if they will make your adjustable rate mortgage into a fixed rate mortgage. Some lenders are willing to do that so you do not go into foreclosure.

If you live in Michigan and have a mortgage and would like to go over your options feel free to give me a call at (313) 310-9855 or email me at info@russravary.com For more on mortgages and Michigan real estate go to my website www.russravary.com

FHA Mortgages

I believe a FHA Mortgage is great for most first time home buyers that do not have 5% or more to put down. The reason I say this is that they allow people with past bruised credit to buy a home. They allow people with limited credit history to buy a home. They allow you to buy a home with very little down and allow the seller to pay closing costs. And the best reason a FHA mortgage is great is that the rates are good. You are not usually going to pay an exorbitant rate!
FHA is home buyers program that allows you to get a good rate if you had bad credit in the past. FHA usually wants you to have good credit for the past year. FHA loans are sometimes the stepping stone between bad credit and excellent credit.
If you are thinking of buying a home whether it is the first time or you have bought homes before I would ask your mortgage person about them. It may be the way for you to go and get into a home at a great rate. Visit my Michigan mortgage information page for more information or email me at my website http://www.russravary.com/ to see if I can get you a great rate.
Hug your children just for no reason and tell them how much you love them.
Russ Ravary