RENTING A HOME VERSES BUYING

With home values continuing to drop in many areas of the country, it could be beneficial for you to rent as opposed to buying at this time. One formula for testing the market in an area you would like to purchase is called the rule of 15.

Research the average rent for the area by going to Zillow.com or Trulia.com and calculate the amount you would spend on rent for a year. Example: Rent at $2500 per month times twelve equal $30,000 per year.
Multiply $30,000 by 15 and you have a total of $450,000.
If comparable homes, similar to the one you will be renting, are selling for more than $450,000 it is an indication that the values have not declined in that area. It would be wise to rent for a while instead of buying while keeping an eye on the market.

If renting is not an option for you and you plan to stay in the home you purchase for 10 to 30 years, then go ahead and buy. Make sure you are well informed on the market before signing a contract.



Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
dwing@academynational.net

Foreclosure Rescue Corporation Act

The Bill, at this time, is in front of Congress and will help some homeowners if and when it ever gets passed. The purpose of this Bill is to provide emergency relief to homeowners currently in foreclosure, serious default, or with a reasonable expectation of imminent default. By doing this they hope to accomplish…
1. Extend relief to borrowers who are unable to refinance their loan elsewhere and also to those whose mortgage exceeds the value of their home.
2. Reduce the amount of foreclosures that has caused a downward impact on home values.
3. Encourage mortgage investors and servicers to modify the terms of existing loans to the extent that the borrower can reasonably repay the debt.
Potential borrowers, it appears, will need to qualify for the loan through verification of income, assets and credit scores. The actual criteria for qualifying was not set forth. The majority of homeowners who are either on the verge of foreclosure or in foreclosure are sub-prime borrowers, so it will be interesting to see how many people this new Bill will actually help.
The funds to finance this corporation will come from the issuing of bonds and repayment of these bonds will come from the interest earned off the mortgage loans they originate and service.
To read the full contents of this Bill go to http://thomas.loc.gov/ and search under Bill number H.R. 4135.



Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
dwing@academynational.net

URGENT: SUPPORT DOWNPAYMENT ASSISTANCE!!

TAKE ACTION NOW

Downpayment Assistance Programs in Danger of Elimination!

The Department of Housing and Urban Development (HUD) has re-issued a proposed rule that would eliminate all private downpayment assistance programs.

For over10 years downpayment assistance has help thousands of families achieve their homeownership goals. Together, we can defeat HUD’s proposed rule.

Act Now! We Have One Month to Stop This Action

Speak up now! The proposed rule comment period ends on August 15, 2008. Making your voice heard is simple. Click on “Take Action Now” at the top of this page and let the Federal housing officials and your congressional representatives know how you feel about preserving private downpayment assistance as an option for today’s homebuyers.


Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622

New changes to the FHA program

Beginning on July 14, 2008 new rules for the FHA loan program will go into effect. These changes will affect many borrowers looking to refinance out of a non-FHA (Conventional or VA) to an FHA loan. These new rules will affect the rate and future refinances. In short, FHA is tightening their guidelines just like the conventional markets. Loans that were easily approved a year ago are only approvable with much more documentation or not approved at all.

1. Refinancing from any non-FHA mortgage to an FHA loan will now be required to be an FHASecure product. Previously the FHASecure product was used only for borrowers who were delinquent on their non-FHA mortgage due to the Adjustable Rate Mortgage (ARM) adjusting to a higher rate.
It now includes borrowers who are not delinquent on their mortgage, but currently have a Conventional or VA loan and want to refinance to the FHA loan product. This particular FHA loan carries a bit higher rate than a regular FHA loan.
2. Cash-out refinances are not allowed on the FHASecure program regardless of whether the borrower is delinquent or current on their mortgage payments. Previous rules allowed for non-FHA mortgage loans to be refinanced to a regular FHA and receive cash out up to 95% of property value. Now, the only way a person can get cash out with an FHA loan is if they already have an FHA loan.
3. The premium paid for the Upfront Mortgage Insurance (MIP) and monthly mortgage insurance can increase depending on the borrower’s credit history, loan-to-value and credit score. Previous rules with the monthly and up-front mortgage insurance premiums were the same across the board.
4. First time home buyer (a person that has not owned a home in the past 3 years) with low credit scores are entitled to a reduction of the up-front mortgage insurance premium by completing a HUD-approved pre-purchase counseling course.

For further details on the new expanded FHASecure program please contact Denise Wing at 303-987-0622.


Denise Wing, C.E.O
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
dwing@academynational.net