Posts filed under ‘Economy’
Why a Mortgage Broker is “the best route.”
Barbara Corcoran regarding Mortgage Brokers on NBC’s TODAY this weekend:
“I’m of the belief that the mortgage broker is the best route. Simply because people lack time and also bank loans have gotten so complicated that you need a specialist to explain every detail to you. Mortgage brokers earn their keep.”
In addition to the personal service mortgage brokers provide, we are also offered some of the best rates in the industry that we can pass along to you, our client. Having access to a number of different banks instead of just one means that we can better match your situation to the right terms, right product. After the loan closing, we are available to answer any questions that you may have. To finance property in the state of Maine, come to MDI Mortgage for our straigtforward advice and to see that, yes, “a mortgage broker is the best route.”
The interview can be viewed here: NBC Today
~Sherri Dyer, Advisor & Mortgage Maven
writing for MDI Mortgage, a full service mortgage company located in Bar Harbor, Maine, Mount Desert island
What is Happening with FHA and Will it Impact You?
Is all this added business good news for FHA? Yes and no. With such demand comes pressure, and it is FHA’s capital reserves which are being pressured currently. Last fall we witnessed an increase in FHA’s monthly mortgage insurance premium, and in the middle of next month, April 18th, FHA is implementing an additional increase of .25%.
What can we expect to see after April 18th? The monthly premium will be changing from a factor of .90% to 1.15%. On a purchase price of $200,000.00, this will result in a monthly insurance increase of $40.21 per month. Now, $40 may not be considered a great deal of money by some, but it is worthy of some attention if you are about to apply for financing using an FHA guarantee. If that is the case, it is highly recommended that you apply soon so that an FHA case number can be ordered for you prior to April 18th.
Here’s another way to look at it. If you were able to spend the extra $40.21 per month as a principal reduction instead of paying for insurance, you would save just under 3 years on the life of your loan, or approximately $15,000 in finance charges over the life of the loan.
It is interesting to note that the cost for PRIVATE mortgage insurance, unlike FHA, has been steadily decreasing recently. For a similar loan amount, the factor would be .67%, or $107 per month instead of $185 per month with an FHA loan. Also, FHA has an upfront premium of 1% and the private mortgage insurance does not, so that is an additional savings. With the private mortgage insurance, however, the typical down payment required is 5% instead of 3.5%, and it must be from the borrower’s own funds instead of from a documented gift like the FHA program allows.
With so many changes occurring in the mortgage world, seemingly at the speed of light, it is so beneficial to have a trusted advisor and partner looking out for your best interest. At MDI Mortgage, we are happy to review many different loan options with you, making sure that your financing solution is optimal for your entire financial picture and future direction.
For more details about this change, contact me!”
~Sherri Dyer, Advisor & Mortgage Maven
writing for MDI Mortgage, a full service mortgage company located in Bar Harbor, Maine, Mount Desert island
Get Inside: Solving the Mortgage Mystery 