Moscow Idaho Real Estate -- Lori Cofer's Blog: August 2010

The Lentil Festival is always a welcome event for Pullman.  Folks come from all around both Washington & Idaho to enjoy the festivities.  And the students coming back to WSU love attending.  

All the festivities begin Friday August 20, 2010.  From 5-10 PM is the street fair with our big bowl of Lentil Chili.  Believe me...you have never seen as big of a pot of chili as this one!  I am hoping to be in our booth for Beasley that evening.  Do stop by and say Hi!  From 5-11 P.M. there will be a micro brew tasting...sound good?

Saturday is loaded with events.  The Tase T. Lentil fun run should be a blast at 8 AM.  There will be a pancake feed by the Lion's Club at 8-11 AM at the Cougar Plaza followed by the Tour de Lentil 100k Bike Ride at the city play field.  At 9 AM -11AM there is the preparade float viewing.  At 10AM  is the Walk of Fame unveiling downtown Pullman.  There is a three-on-three basketball Tourney at Reaney Park.  

One of the highlights of the day will be the parade at 11 AM.  We are fortunate at Beasley Realty as the parade goes right in front of the office. After the parade everyone will head to Reaney Park for the Lentil Festival Marketplace which will continue till 5 PM.  There will also be live music at Reaney too.

And Sunday there will be a golf tournament to boot at the Palouse Ridge Golf Course.

Come join the fun!  Pullman knows how to put on a fun event for all!

 

 

About Lori Cofer Find my Pullman dream home What is my home worth? Help me relocate! Contact Lori Cofer

 

 

If you have any questions about Pullman or the Pullman Real Estate Market I am here to help! Feel free to use my my free Pullman WA MLS search...and you are welcome to sign up for automatic market notifications too!

 

 

Click Here For Pullman Properties ~

 

 

 

About the Author: The above piece was provided as a community service by Lori Cofer, a local Pullman WA Real Estate Agent. Lori can be reached via email at loricofer@yahoo.com or by phone at 509-330-0086. Lori is happy to assist you in all your Pullman real estate and Moscow Idaho Real Estate needs. Lori is "Your Pullman WA Real Estate Connection

 

Google Me!

For more information about Lori see her profiles at: Lori Cofer's Businessweek profile; Lori Cofer's Google profile; Lori Cofer's Lookup Page and Lori Cofer's Naymz profile.  Feel free to read her helpful articles on New Construction in Pullman WA; Info about Pullman WA; More Helpful Info about Pullman WA; Info About the Pullman WA schools Info About the Pullman-Moscow Bill Chipman Trail; Ten Easy Ways to Improve Your Curb Appeal For Sellers; Five Tips on Buying Your New Pullman Home; More Tips for Buyers; and Tips on Building Your New Custom Pullman WA Home.

If you enjoyed my post, why not connect with me elsewhere?

 

FHA first proposed the monthly mortgage insurance changes in the beginning of 2010. Bill H.R. 5981 was first passed by the House in the spring and was just passed by the Senate the other day.  What does this bill do for FHA mortgages? They have projected that it will yield approximately $300 million per month to the FHA insurance fund.

So what are the new FHA changes? - For terms greater than 15 years -

LTV's <= 95% will increase the monthly fee by 85 bps

LTV's >   95% will increase the monthly fee by 90 bps

And lastly, it will reduce the Upfront Mortgage Insurance Premium, UFMIP, from 225 basis points to 100 basis points.

The plan is to go into effect by September 7th, 2010 on all FHA case numbers. FHA gives it's reasons to this new plan. FHA letter from David H. Stevens

 

 

 

So what do the actual changes mean to the average borrower that will rely on FHA loans when purchasing a new home or refinancing?

                - The Old Plan -

LTV's <= 95% will increase the monthly fee by 50 bps

LTV's >   95% will increase the monthly fee by 55 bps

 

 

Example of the changes regarding the FHA monthly mortgage insurance known as MMI or annual mortgage insurance premium and the FHA upfront mortgage insurance premium known as UFMIP.

UPDATE BELOW in chart - The 2nd column, the upfront mortgage insurance premium, is usually added into the base loan amount. In this scenario, that is what I did. It's not actually a cash savings out of pocket, but just a reduction in the new loan amount.  I guess it wasn't clear, because a few people that this whole change was going to help those with less money out of pocket. The buyer still needs 3.5% out of pocket, which is the down payment.

 

 

 

 

 

 

 

 

 

 

 

As you can see, it would be much cheaper monthly with the old plan, even though you pay $3,317 more upfront, on top of your loan. This can also be a tax write off since it's included in your principal. Your break even point on this type of scenario is 47 months, which is roughly 3.9 years. After this break even point, you would have started to spend more money in reality. This is how FHA will increase it's mortgage fund. As you can see, it won't be increased as quickly upfront, but over a longer period of time. So if you held onto this mortgage for 7 years, you would have spent approximately $2,522 more.

Now, there are several other factors to consider when reviewing this kind of information.  Just for the fact that your original balance on the loan will be $3,317 lower and in 7 years, still be that much lower. And as I mentioned, you would have a little more of a tax advantage on the higher balance though.

All I wanted to do was to present the basics of FHA loans and not get into the extreme details on how one could show either side. What could this do to a potential home buyer?  It could reduce your purchasing power. In this scenario, if you had originally qualified for a $275,000 loan with qualifying ratios of 31/43, what would your new purchase price be.

 

 

- New Purchasing Power after September 6th, 2010 -

With the new FHA monthly mortgage insurance and the FHA upfront mortgage insurance premium changes, your purchasing value would drop approximately $10,000, a purchase price of $265,000. Now, these are just averages, because this will all be based on the actual purchase price. Meaning if values are higher or lower, the total amount could change some. But this should give you a good understanding of what changes lie ahead for FHA mortgages in the near future.

 

 

UPDATE : Travis Newton did a similar post, using a $200,000 purchase price and as you can see, the mortgage payment inceased by $45.29/month.   Notice *** FHA Changes

 

 

_____________________________________________________________________________________________________

 

                  

                                                                                                           FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

Follow me on:

 

 

_____________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

 

These large trees framed the forest like two guards on sentinal duty.  I took this picture on the trail at Cape Look Out on my recent trip to Portland Rain Camp.

 

 

About Lori Cofer Find my Pullman dream home What is my home worth? Help me relocate! Contact Lori Cofer

 

 

If you have any questions about Pullman or the Pullman Real Estate Market I am here to help! Feel free to use my my free Pullman WA MLS search...and you are welcome to sign up for automatic market notifications too!

 

 

Click Here For Pullman Properties ~

 

 

 

About the Author: The above piece was provided as a community service by Lori Cofer, a local Pullman WA Real Estate Agent. Lori can be reached via email at loricofer@yahoo.com or by phone at 509-330-0086. Lori is happy to assist you in all your Pullman real estate and Moscow Idaho Real Estate needs. Lori is "Your Pullman WA Real Estate Connection

 

Google Me!

For more information about Lori see her profiles at: Lori Cofer's Businessweek profile; Lori Cofer's Google profile; Lori Cofer's Lookup Page and Lori Cofer's Naymz profile.  Feel free to read her helpful articles on New Construction in Pullman WA; Info about Pullman WA; More Helpful Info about Pullman WA; Info About the Pullman WA schools Info About the Pullman-Moscow Bill Chipman Trail; Ten Easy Ways to Improve Your Curb Appeal For Sellers; Five Tips on Buying Your New Pullman Home; More Tips for Buyers; and Tips on Building Your New Custom Pullman WA Home.

If you enjoyed my post, why not connect with me elsewhere?