Distressed Property Report - September 2012Gathering intelligence on Short Sales and Foreclosures is now easier with theDistressed Property Report. This report contains three interactive maps: short sales, foreclosures and a map of all distressed properties. Each map is a snapshot of the active distressed property aggregated by ZIP Code. The August 2012 Distressed Property Report can be found here. There are no "from" and "to" dates on the Distressed Property Report because the data is Active properties in the system on the day the report is published. The "Percentage of Actives" shows what percentage of Active listings are distressed in each ZIP Code. Each map is displayed below: Clicking a dot on any map will display more information (example). Just like a Google Map, the maps below can be zoomed, panned and moved.
SHARE THIS REPORT:
   Foreclosures as of 09/27/2012:All Distressed Properties (Short Sales and Foreclosures) as of 09/27/2012: |
Thursday, September 27, 2012
Distressed Property Report - September 2012
Friday, September 21, 2012
Should you Rent or Buy a Home in 2012
Should you Rent or Buy a Home in 2012?
Should you Rent or Buy a Home? Last year at this time I wrote about weather you "should Rent or Buy a Home" (see blog below) Here is the Update One year later. It is cheaper to pay rent on a single family home or pay a mortgage on a single family home? Rental rates have gone up so, yes Buy if you can.
This article compares the average monthly rent paid for a rental compared to how much the mortgage payment might be to purchase an average priced single family home in greater Phoenix area.
The average single family Home rental rate is $1,850 and average single family purchase price is now $218,000.00 as of September 1, 2012 for Greater Phoenix. (This information is available from Arizona Regional Multiple Listing Service, Inc.) (2100Sqft. Home, 3-4 Bedrooms, 2-3 baths, with 2 car garage, with or without a pool.)
Now, if we look at a FHA 3.5% down loan, fixed rate of 3.259% for 30yrs at a purchase price of $218,000 the monthly payment with principle, interest and mortgage insurance (M.I.P.), would be $1094. Granted, we have to consider taxes and homeowners insurance; additional cost of 285.00 to $1094.00 = $1,379.00 That’s a savings of $471.00 per month, and a total savings of $5,652.00 per year. What could you do with an extra $5,652.00 per year? Now how do you feel about “Should you Rent or Buy a Single Family Home?”
One benefit of owning is tax deductions. If a home owner itemizes on their federal tax return they may take a tax deduction for the annual mortgage interest paid and annual property taxes paid.
Possible Tax deduction for above scenario
$6,829.00 mortgage interest paid first year on loan, plus $2616.00 in property taxes paid the first year=$9,445.00 x 25% federal tax rate=$2,361.25 tax deduction.
(The actual tax rate will vary according to the owner’s income and is only an estimate for this scenario.)
$2,361.25 may be deducted from federal taxes. $2,361.25 divided by twelve months is $196.77
$1,182.23 Effective monthly mortgage payment if owner itemizes and able to take deductions.
$1,379-196.77 = 1,182.23
OR
$667.77 Less than paying $1,850.00 in rent.
***(PLEASE CONSULT A CPA ON TAX INFORMATION)***
Conclusion:
Should you Rent or Buy a Home?
While there are many reasons to rent or buy; this article compares the average monthly rental amount paid for a single family home in Greater Phoenix compared to the amount of a monthly mortgage payment using a scenario to purchase the average priced single family home in Greater Phoenix. If analyzed only by the amount of the monthly payment buying trumps renting in the example given.
If you’re thinking about buying or renting, please call me for more information.
"Opening The Door To Opportunity and Your Future Home..."
Thank you
Joseph D'Ambrosio
Joseph D'Ambrosio Cell: 623-810-4824
Executive Sales Associate
Keller Williams Integrity First Realty
Email: joseph.dambrosio@kw.com
Website: www.Arizona-HomeBuying.comThank you
Joseph D'Ambrosio
Joseph D'Ambrosio Cell: 623-810-4824
Executive Sales Associate
Keller Williams Integrity First Realty
Email: joseph.dambrosio@kw.com
Website: www.Arizona-HomeBuying.kwrealty.com
Phoenix Metro Area Market Report for September 2012
Market Report for September 2012
Here is the Market Report for the period ending August 2012. For a more thorough understanding of how the market is shifting and how this affects you, please give me a call and we can discuss it in more detail.
Closed Sales Report Analysis:
Sellers:
As is typical in the month of August, we saw a slight increase in the number of sales last month, increasing by 6.2% over the prior month. The statistics show that we had 6,713 residential homes sell in the month of August in Maricopa County. It will be important to watch this trend over the next few months to see if we are following the same patterns of the prior two years that are analyzed in this report.
Buyers:
For buyers, this means that competition for homes still remains very high. We continue to see homes continuing to sell well above list price AND cash buyers being the ultimate winners in the bidding war, especially when homes are priced below $200,000. Buyers should continue to carefully work with me to understand the market AND how they can compete with the market demand and other buyers who may be in a financial position that is more appealing to the seller.
Distressed Sales Analysis:
The market continues to shift, as we saw 56.7% of sales in the month of August classified as “non-distressed” sales. This is the highest number in the 36 month reporting period. Bank-owned sales dropped from 14.1% to 13%, and short sales increased from 29.6% to 30.3%. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
Average Sales Price Analysis:
Sellers:
The trend of a lower average sales price continued in the month of August, dropping by 3.5%. However, this follows the trends for the month of August in the prior two years. The month of August showed a decrease in the average sales price from $204,057 to $196,857; this remains the 5th highest average price in the 36-month reporting period. Sellers should continue to watch this trend as they are pricing homes in today’s market. It is now more important than ever that sellers continue to price according to the market and understand how the current market will apply to your individual area and/or home. It will also be important to monitor the impact this trend begins to have on appraisals and finding qualified buyers at these higher prices.
.
Buyers:
For buyers, it is absolutely critical to be aware of this shift in the price of homes. This decrease does not necessarily mean that buyers have more buying power than they did in the prior month – it could simply mean that higher-priced homes are not moving as quickly over the summer months. There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. More than ever, you need to work with me to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
List to Sales Price Ratio Analysis:
Sellers:
From March to June, we saw this ratio steadily increasing and then a drop in July. August saw this number rebound and become the 2nd highest number in the 36-month reporting period –to 97.98%. This is the ratio a seller receives when selling his/her home as compared to the price where the home was. The higher the number, the closer the final sales price is to the listing price. With the competitive nature of the market, this ratio still remains very high, and in homes priced under $150,000, we are seeing this ratio remain ABOVE 100% -- that means buyers in those price ranges, on average, are paying MORE for a house than the list price of the home. Continue to watch this trend, as it will continue to impact how homes should be priced in the current market in order to appeal to the buyers.
Buyers:
Buyers need to pay attention. As this average moves closer to 100%, on lower priced/highly desirable properties, buyers are discovering more and more in the lower price ranges that they may have to pay above list price AND they are competing with investors who are bringing cash to the transaction. Since a home must appraise in order to obtain a loan, underwriters are still looking very closely at prices and making sure that homes are selling at or below market value.
This could mean that investors have an advantage if they are willing to pay higher than the list price. Call me to help you understand the competitiveness of the list price of the home you are wanting to purchase. You also need to be aware of the interest and sales activity in the area where you are wanting to buy and how the offer you are making competes with the market AND with trends relative to the price where homes are selling in the areas you have an interest.
Here is the Market Report for the period ending August 2012. For a more thorough understanding of how the market is shifting and how this affects you, please give me a call and we can discuss it in more detail.
(click on any picture for a larger image)
Sellers:
As is typical in the month of August, we saw a slight increase in the number of sales last month, increasing by 6.2% over the prior month. The statistics show that we had 6,713 residential homes sell in the month of August in Maricopa County. It will be important to watch this trend over the next few months to see if we are following the same patterns of the prior two years that are analyzed in this report.
Buyers:
For buyers, this means that competition for homes still remains very high. We continue to see homes continuing to sell well above list price AND cash buyers being the ultimate winners in the bidding war, especially when homes are priced below $200,000. Buyers should continue to carefully work with me to understand the market AND how they can compete with the market demand and other buyers who may be in a financial position that is more appealing to the seller.
The market continues to shift, as we saw 56.7% of sales in the month of August classified as “non-distressed” sales. This is the highest number in the 36 month reporting period. Bank-owned sales dropped from 14.1% to 13%, and short sales increased from 29.6% to 30.3%. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
Sellers:
The trend of a lower average sales price continued in the month of August, dropping by 3.5%. However, this follows the trends for the month of August in the prior two years. The month of August showed a decrease in the average sales price from $204,057 to $196,857; this remains the 5th highest average price in the 36-month reporting period. Sellers should continue to watch this trend as they are pricing homes in today’s market. It is now more important than ever that sellers continue to price according to the market and understand how the current market will apply to your individual area and/or home. It will also be important to monitor the impact this trend begins to have on appraisals and finding qualified buyers at these higher prices.
.
Buyers:
For buyers, it is absolutely critical to be aware of this shift in the price of homes. This decrease does not necessarily mean that buyers have more buying power than they did in the prior month – it could simply mean that higher-priced homes are not moving as quickly over the summer months. There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. More than ever, you need to work with me to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
Sellers:
From March to June, we saw this ratio steadily increasing and then a drop in July. August saw this number rebound and become the 2nd highest number in the 36-month reporting period –to 97.98%. This is the ratio a seller receives when selling his/her home as compared to the price where the home was. The higher the number, the closer the final sales price is to the listing price. With the competitive nature of the market, this ratio still remains very high, and in homes priced under $150,000, we are seeing this ratio remain ABOVE 100% -- that means buyers in those price ranges, on average, are paying MORE for a house than the list price of the home. Continue to watch this trend, as it will continue to impact how homes should be priced in the current market in order to appeal to the buyers.
Buyers:
Buyers need to pay attention. As this average moves closer to 100%, on lower priced/highly desirable properties, buyers are discovering more and more in the lower price ranges that they may have to pay above list price AND they are competing with investors who are bringing cash to the transaction. Since a home must appraise in order to obtain a loan, underwriters are still looking very closely at prices and making sure that homes are selling at or below market value.
This could mean that investors have an advantage if they are willing to pay higher than the list price. Call me to help you understand the competitiveness of the list price of the home you are wanting to purchase. You also need to be aware of the interest and sales activity in the area where you are wanting to buy and how the offer you are making competes with the market AND with trends relative to the price where homes are selling in the areas you have an interest.
The numbers above represent the entire Phoenix MLS.
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?
I would be very happy to get you that information. Just let me know.
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?
I would be very happy to get you that information. Just let me know.
Joseph D'Ambrosio
Executive Sales Associate
Keller Williams Integrity First Realty
Keller Williams Integrity First Realty
18940 N. Pima Road Ste 100
Scottsdale, AZ, 85255
Cell: 623-810-4824
Email: joseph.dambrosio@kw.com
Website: www.Arizona-HomeBuying.com
Website: www.Arizona-HomeBuying.kwrealty.com
Wednesday, June 27, 2012
Phoenix Metro Area Market Report for May 2012
Here is the Market Report for the period ending May 2012. Prices are the highest they have been in 3.5 years, inventory continues to fall, and homes are selling faster than ever.
For a more thorough understanding of how the market is shifting and how this affects you, please give me a call and we can discuss it in more detail.
(click graph for larger view)
Average Sales Analysis:
Sellers: Attention! For 9 months, we have seen the average sales price increase from what appears to be the bottom of the market that we hit in August of last year. May saw an increase in our average sales price by 6.5% to $210,145. This is highest average since November of 2008! For the first time in 3 ½ years, we have broken the $200,000 barrier! It is now more important than ever that sellers continue to price according to the market and understand how the current market will apply to your individual area and/or home. It will also be important to monitor the impact this trend begins to have on appraisals and finding qualified buyers at these higher prices.
Buyers: For buyers, it is absolutely critical to be aware of this shift in the price of homes. This increase means that buyers once again have less buying power than they did in the prior month. There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. The days of buying a $60,000 home may be a thing of the past! More than ever, you need to work with your real estate professional to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
(click graph for larger view)
New Listings Analysis:
Sellers: The month of May saw an increase of 117 new listings entering the market as compared to the month of April. It is actually normal to see new inventory decrease in this month, so the market appears to be varying from the trends of the prior 2 years. At a time when buyers are competing to find a home, May saw the 4th lowest number of new inventory in the 36-month reporting period. Sellers should monitor this new inventory to see how it might impact the sale of their home. In this great market, it is even more important that sellers need to make sure they remain as the top choice for active buyers in the marketplace. If your home is not selling in this aggressive market, it is more than likely a pricing issue – buyers are still looking for the best value possible.
Buyers: Buyers pay attention! May brought you 8,092 more options! This is potentially good news as buyers continue to submit multiple offers on available inventory. More than ever, it is essential that you take advantage of this new inventory. Spend time with me and we can develop your strategy for succeeding in a market that is constantly changing.
(click graph for larger view)
Months of Inventory Analysis:(This report has been generated by taking the number of active listings and dividing it by SALES for the past month)
Sellers: The high demand for residential properties in Maricopa continues to have a significant impact on the available inventory. The month of May saw a 5% DECREASE in this number, resulting in only 1.3 months of inventory. This is by far, the lowest number we have seen in the 36-month reporting period. This is a dramatic change from the 22.74 months of inventory we had a few years ago. This statistic means, that on average, we continue to remain in an even stronger “seller’s market” that is identified when this statistic reflects less than 5 months of inventory. Although this traditionally means that sellers will have more control in a sales transaction than the buyer, it is essential that you are meeting with your real estate professional to determine the ACTUAL market in your area. You may find that you have more or less control than the average.
Buyers: Buyers will want to seriously monitor this as well, as it indicates that there is extremely low inventory. We remain in a very strong seller’s market. A seller’s market traditionally gives less control to buyers and can create significant competition for the current inventory. The current low inventory is resulting in homes selling more quickly, at a higher price, and with fewer concessions for buyers. However, the type of market will vary from price range to price range and even area to area. Let’s have a discussion to make sure you understand the type of market you are in.
May statistics are having us seeing even more green, as non-distressed sales are becoming more and more prevalent in today’s real estate market! Green is the color of non-distressed sales, and we are seeing these properties become a much larger piece of the pie! We continue to shift toward a more traditional market—May bank-owned sales decreased by 1.7%. Short sales increased by 2.1%, and traditional sales INCREASED by .6%. At one point, traditional sales accounted for only 28.5% of home sales – the tide has definitely turned!
This statistic means that the competition from foreclosure properties continues to decrease while traditional sales from sellers with equity continue to increase the percentage of activity in our current market.
Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
For a more thorough understanding of how the market is shifting and how this affects you, please give me a call and we can discuss it in more detail.
(click graph for larger view)
Sellers: Attention! For 9 months, we have seen the average sales price increase from what appears to be the bottom of the market that we hit in August of last year. May saw an increase in our average sales price by 6.5% to $210,145. This is highest average since November of 2008! For the first time in 3 ½ years, we have broken the $200,000 barrier! It is now more important than ever that sellers continue to price according to the market and understand how the current market will apply to your individual area and/or home. It will also be important to monitor the impact this trend begins to have on appraisals and finding qualified buyers at these higher prices.
Buyers: For buyers, it is absolutely critical to be aware of this shift in the price of homes. This increase means that buyers once again have less buying power than they did in the prior month. There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. The days of buying a $60,000 home may be a thing of the past! More than ever, you need to work with your real estate professional to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
(click graph for larger view)
Sellers: The month of May saw an increase of 117 new listings entering the market as compared to the month of April. It is actually normal to see new inventory decrease in this month, so the market appears to be varying from the trends of the prior 2 years. At a time when buyers are competing to find a home, May saw the 4th lowest number of new inventory in the 36-month reporting period. Sellers should monitor this new inventory to see how it might impact the sale of their home. In this great market, it is even more important that sellers need to make sure they remain as the top choice for active buyers in the marketplace. If your home is not selling in this aggressive market, it is more than likely a pricing issue – buyers are still looking for the best value possible.
Buyers: Buyers pay attention! May brought you 8,092 more options! This is potentially good news as buyers continue to submit multiple offers on available inventory. More than ever, it is essential that you take advantage of this new inventory. Spend time with me and we can develop your strategy for succeeding in a market that is constantly changing.
(click graph for larger view)
Sellers: The high demand for residential properties in Maricopa continues to have a significant impact on the available inventory. The month of May saw a 5% DECREASE in this number, resulting in only 1.3 months of inventory. This is by far, the lowest number we have seen in the 36-month reporting period. This is a dramatic change from the 22.74 months of inventory we had a few years ago. This statistic means, that on average, we continue to remain in an even stronger “seller’s market” that is identified when this statistic reflects less than 5 months of inventory. Although this traditionally means that sellers will have more control in a sales transaction than the buyer, it is essential that you are meeting with your real estate professional to determine the ACTUAL market in your area. You may find that you have more or less control than the average.
Buyers: Buyers will want to seriously monitor this as well, as it indicates that there is extremely low inventory. We remain in a very strong seller’s market. A seller’s market traditionally gives less control to buyers and can create significant competition for the current inventory. The current low inventory is resulting in homes selling more quickly, at a higher price, and with fewer concessions for buyers. However, the type of market will vary from price range to price range and even area to area. Let’s have a discussion to make sure you understand the type of market you are in.
(click graph for larger view)
Distressed Sales Analysis:May statistics are having us seeing even more green, as non-distressed sales are becoming more and more prevalent in today’s real estate market! Green is the color of non-distressed sales, and we are seeing these properties become a much larger piece of the pie! We continue to shift toward a more traditional market—May bank-owned sales decreased by 1.7%. Short sales increased by 2.1%, and traditional sales INCREASED by .6%. At one point, traditional sales accounted for only 28.5% of home sales – the tide has definitely turned!
This statistic means that the competition from foreclosure properties continues to decrease while traditional sales from sellers with equity continue to increase the percentage of activity in our current market.
Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
The numbers above represent the entire Phoenix MLS.
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?
I would be very happy to get you that information.
Just hit the Reply and let me know.
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?
I would be very happy to get you that information.
Just hit the Reply and let me know.
Joseph D'Ambrosio
Executive Sales Associate
Keller Williams Integrity First Realty
18940 N. Pima Road Ste 100
Scottsdale, AZ, 85255
Cell: 623-810-4824
Email: joseph.dambrosio@kw.com
Website: www.Arizona-HomeBuying.com
Website: www.Arizona-HomeBuying.kwrealty.com
Thursday, March 1, 2012
DO’s and DON’Ts FOR A SMOOTH LOAN APPROVAL
DO’s and DON’Ts
TIPS FOR A SMOOTH LOAN APPROVAL
Here is a list of helpful tips to ensure an effortless, delay- free loan process.
· DO continue making your mortgage or rent payments
· DO stay current on all existing accounts
· DO keep working at your current employer
· DO keep the same insurance company
· DO continue living at your current residence
· DO continue to use your credit as normal
· DO call us if you have any questions
· DON’T use any of your credit cards without a discussion with us first
· DON’T apply for new credit (even if you seem to be pre-approved)
· DON’T make a major purchase (car, RV, boat, jewelry, furniture, etc.)
· DON’T transfer any balances from one account to another
· DON’T pay off charge offs without a discussion with us first
· DON’T pay off collections without a discussion with us first
· DON’T pay off any loans or credit cards without discussion with us first
· DON’T close any credit card accounts
· DON’T change bank accounts
· DON’T consolidate your debt onto 1 or 2 credit cards
· DON’T take out a new loan
· DON’T start any home improvement projects
· DON’T finance any elective medical procedure
· DON’T open a new cellular phone account
· DON’T join a new fitness club
If you encounter a special situation, it is best to mention it to us right away so we can help you determine the best way to achieve your goals
For Mortgage Questions or needs contact Jeff Armstein or Real Estate Questions or Needs contact Joseph D'Ambrosio at the number below,
"Opening The Door To Opportunity and Your Future Home..."
Jeffrey Arnstein Joseph D'Ambrosio
Senior Mortgage Banker Executive Sales Associate
AmeriFirst Financial, Inc. Keller Williams Northeast Reality
15111 N. PIMA RD Suite 110 2005 W. Happy Valley Rd #150
Scottsdale, AZ 85260 Phoenix, AZ, 85085
(602) 363-6030 Cell: 623-810-4824
Website: www.Arizona-HomeBuying.com
Website: www.Arizona-HomeBuying.kwrealty.com
Distressed Property Report - February 2012
Distressed Property Report - February 2012
Gathering intelligence on Short Sales and Foreclosures is now easier with the Distressed Property Report. This report contains three interactive maps: short sales, foreclosures and a map of all distressed properties. Each map is a snapshot of the active distressed property aggregated by ZIP Code. The January 2012 Distressed Property Report can be found here.There are no "from" and "to" dates on the Distressed Property Report because the data is Active properties in the system on the day the report is published. The "Percentage of Actives" shows what percentage of Active listings are distressed in each ZIP Code. Each map is displayed below:
Clicking a dot on any map will display more information (example). Just like a Google Map, the maps below can be zoomed, panned and moved.
SHARE THIS REPORT:
Foreclosures as of 02/29/2012:
All Distressed Properties (Short Sales and Foreclosures) as of 02/29/2012:
"Opening The Door To Opportunity and Your Future Home..."
Thank you
Joseph D'Ambrosio
Joseph D'Ambrosio Cell: 623-810-4824
Executive Sales Associate Fax: 623-399-9832
Keller Williams Northeast Reality Email: joseph.dambrosio@kw.com
Website: www.Arizona-HomeBuying.com Website: www.Arizona-HomeBuying.kwrealty.comThank you
Joseph D'Ambrosio
Joseph D'Ambrosio Cell: 623-810-4824
Executive Sales Associate Fax: 623-399-9832
Keller Williams Northeast Reality Email: joseph.dambrosio@kw.com
Tuesday, February 28, 2012
IMPORTANT: Information that will affect FHA BUYERS!
Here is some IMPORTANT information that will affect FHA BUYERS!
FHA is Increasing the Upfront MIP from 1.0% to 1.75%. It is also increasing the Monthly Insurance Premium from 1.15% to 1.25%. Both increases will take affect with case numbers assigned on or After April 1st.
That means for a Purchase Price of $150,000 the increase will raise the monthly mortgage payment by approx $18 per month. Although the announcement says the Upfront Premium will add approx $5 per month to the average borrower, it conveniently left out the additional 0.1% increase in the Annual MIP which raises it another $13 per month.
Buyers have to have accepted purchase offers prior to March 31st.
FHA TAKES ADDITIONAL STEPS TO BOLSTER CAPITAL RESERVES
New premium structure will help protect FHA’s MMI fund
New premium structure will help protect FHA’s MMI fund
WASHINGTON – As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.
These premium changes will impact new loans insured by FHA beginning in April and June of 2012. Details will soon be published in a Mortgagee Letter to FHA-approved lenders.
“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market,” said Galante. “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”
The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.
The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.
FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month. These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan. Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.
Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013.
For Mortgage Questions or needs contact Jeff Armstein or Real Estate Questions or Needs contact Joseph D'Ambrosio at the number below,
"Opening The Door To Opportunity and Your Future Home..."
Jeffrey Arnstein Joseph D'Ambrosio
Senior Mortgage Banker Executive Sales Associate
AmeriFirst Financial, Inc. Keller Williams Northeast Reality
15111 N. PIMA RD Suite 110 2005 W. Happy Valley Rd #150
Scottsdale, AZ 85260 Phoenix, AZ, 85085
(602) 363-6030 Cell: 623-810-4824
Scottsdale, AZ 85260 Phoenix, AZ, 85085
(602) 363-6030 Cell: 623-810-4824
Website: www.Arizona-HomeBuying.com
Website: www.Arizona-HomeBuying.kwrealty.com
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