The Lipinski Team

Changes to FHA Mortgage Insurance

The Lipinski Team — Wed, 11 Apr 2012 21:06:16 +0000

FHA mortgage insurance premiums, the up front and annual(paid monthly), will increase starting on April 9, 2012.

The new premiums are as follows:

Up Front Mortgage Insurance Premium (UFMIP) 1.75
Annual (paid monthly) 1.25

There are some exceptions to these premium amounts based on loan to value and loan amount, but these premiums are based on the most common transactions in the greater Boise area including Nampa, Caldwell, Meridian, Eagle, Kuna, Star, etc. Here are the full details of the new FHA mortgage insurance premiums.

Lets take a look at how to calculate the annual mortgage insurance premium (paid monthly) using a purchase price of $100,000. You take the purchase price, less the down payment, 1.25%, divide by 12.

Purchase Price = $100,000 – $3,500 (3.5% down payment) = $96,500

Base Loan Amount = $96,500 x .0125 = $1,206.25/12 = $100.52 monthly FHA mortgage insurance.

The UFMIP is much simpler. Purchase price, minus down payment, multiply by .0175.

$100,000 – $3,500 = $96,500 X .0175 = $1,688.75

The UFMIP is usually financed into the loan by adding it to the base loan amount. To see how all this comes together, I have put together a video on how to calculate a monthly payment for an FHA loan.

5 Most Common Loan Types

The Lipinski Team — Thu, 26 May 2011 22:13:01 +0000

5 Most Common Loan Types
Listed below are the 5 most common loan types that are used to finance properties in the greater Boise area and surrounding communities of Eagle, Meridian, Nampa, and Caldwell to name a few.

Conventional – A conventional loan is a mortgage loan that is not insured or guaranteed by a governmental agency. A conventional loan can be a fixed or adjustable interest rate loan. Conforming conventional loans follow the guidelines set by Fannie Mae and Freddie Mac. Non-conforming loans are also conventional loans, but do not follow the conforming guidelines.

FHA – An FHA loan is a mortgage loan that is insured by the Federal Housing Administration. If the borrower cannot repay the loan, the government pays the lender for any losses it may incur. FHA loans require a minimum down payment of 3.5% of the sales price. FHA loans require mortgage insurance. There is an Upfront Mortgage Insurance that is financed into the loan and a Monthly Mortgage Insurance that is included in the monthly payment.

VA – A Veteran’s Administration loan is only available to veterans that have served in the US Military and in some cases, their surviving spouses. There is no down payment required for this loan and the loan is guaranteed by the government. A VA loan has a Guarantee Fee, this fee can be paid upfront or financed into the loan.

RD – Rural Development is a mortgage loan for home buyers wanting to buy in eligible areas designated by Rural Development. We try to utilize this type of loan when someone is looking to purchase in Middleton, Kuna, Wilder, Homedale, Marsing, Melba, etc. To check property eligibility click here. RD loans do not require a down payment. There is a guarantee fee that is financed into the loan. This loan is also guaranteed by the government.

IHFA – Idaho Housing and Finance Association is an organization that provides funding for affordable housing opportunities in Idaho. They offer reduced interest rates and down payment assistance to help Idahoans buy primary residences in Idaho. Their loan types are Conventional, FHA, VA or RD.

Mortgage Glossary

The Lipinski Team — Tue, 03 May 2011 20:00:39 +0000

Adjustable-Rate Mortgage (ARM) – A loan with an interest rate that remains fixed for a period of time and then adjusts with market conditions on pre-determined dates.
Amortization — The way in which a loan is repaid in installments of principal and interest, according to a regular schedule, over the life of the loan.
Appraisal—A report written by a qualified expert that states an opinion on the value of a property based on the characteristics and the selling prices of similar properties or comparable properties.
Closing—The final step after a lender approves an application. The homebuyer signs all of the final documents and the funds for the loan are turned over to the homebuyer’s closing agent.
Closing Agent - Usually a representative from a title agency who oversees the closing and witnesses signing of the closing documents.
Commitment Letter—A binding, written pledge, by the lender to a mortgage applicant, to make a loan, usually under certain stated conditions.
Credit Report—A report issued by an independent company which contains a person’s credit history and current credit standing.
Credit Score—A numerical rating that indicates an applicant’s creditworthiness based on a number of criteria.
Debt-to-Income Ratio—A formula used to determine the percentage of an applicants debt compared to their income. Debt is divided by income.
Deed—A legal document that transfers ownership of a property.
Down Payment—A portion of the sales price paid by the homebuyer to the seller at closing. The difference between the sales price and the mortgage loan amount.
Equity—The value of the property that exceeds the current amount owed on the property. Example: Property value is $100,000 and the amount owed on the property is $75,000, then the amount of equity is $25,000.
Fixed-Rate Mortgage—A loan with an interest rate that remains the same for the entire term of the loan.
Good Faith Estimate—A document that tells the applicant the approximate costs they will pay at or before closing.
Homeowner’s Insurance (also called hazard insurance) – An insurance policy required of the buyer protecting the property against loss caused by fire, some natural causes, vandalism, etc. May also include added coverage for personal belongings and theft.
HUD-1 Settlement Statement—A standard form used to show all of the costs at closing.
Interest Rate—A percentage of the mortgage amount that is paid to the lender for the use of the lender’s money, expressed as a percentage.
Lien—A legal hold or claim of a creditor on the property of another as a security for the debt.
Mortgage Insurance—An insurance policy that will repay a portion of the loan if the borrower does not make payments as agreed on the note. Mortgage insurance may be required if the borrower puts less than a 20% down payment.
Mortgagee—The lender.
Mortgagor—The borrower.
Note—An agreement which states the home mortgage amount to be borrowed and the terms and conditions of the loan. It also includes a complete description of how the loan should be repaid and the time frame of the repayment.
Origination Fee—The amount collected by the lender for making a loan.
Points—One point equals 1% of the loan amount. They are usually paid by a borrower to reduce the loan’s interest rate.
Principal—The amount of a loan, excluding interest; or the remaining balance of the loan, excluding interest.
Title—Evidence of current right to or ownership of a property, plus a history of its ownership and transfers.
Title Insurance—An insurance policy that insures against any losses to the property that result from defects in the title or deed.
Truth-In-Lending Statement—A statement required by federal regulations that tells consumers the cost of financing their loan expressed as the annual percentage rate (APR). It also discloses all material terms of the loan including the number of payments, payment amounts, etc.

FHA increases monthly mortgage insurance premiums

The Lipinski Team — Wed, 20 Apr 2011 03:19:15 +0000

The Federal Housing Adminisrtation has increased monthly mortgage insurance premiums effective April 18th, 2011. The increase is up .25 basis points from .90 to 1.15.
What does this mean for a future homebuyer wanting to do an FHA loan? An increased monthly payment. Here’s how it is calculated using a hypothetical purchase price of $100,000:

$100,000 less your down payment of 3.5% ($3,500) leaves a base loan amount of $96,500.
Now multiply $96,000 by 1.15% and you get $1,109.75.
Now divide $1,109.75 by 12 and you come up with $92.48.
This is the amount you pay monthly under the new factor. Using the same calculations and the old factor of .90, you would pay $72.38 monthly, which is an increase of $20.10 monthly.

The FHA believes this change is nessessary to maintain their current programs. Since FHA loans are so critical to the recovery of the housing industry, and the housing industry has historically been the primary vehicle of recovery for the economy in general, this appears to be a small sacrifice. I will keep you posted of any future changes!!!

Welcome to Academy Mortgage

The Lipinski Team — Sun, 10 Apr 2011 15:34:18 +0000

Over the last two decades Academy Mortgage has grown into one of the largest independent mortgage companies in the West. Founded in 1988, our reputation for outstanding customer service has allowed us to grow into a thriving mortgage lender.

We have some distinct characteristics that allow us to provide advantages to our customers. First and foremost, we are a direct lender. As such, our fees are low because we cut out the middle man and common broker charges. On top of that, we do everything (processing, underwriting, etc.) in our offices. This way, we have control over how your loan is handled and we know which stage it is in at all times. Next, we offer a complete range of loan products. Be it Conventional, FHA, VA, IHFA, RD, or any other loan you can mention; if a loan program has been done before, we can do it. Whether you are wanting to purchase, relocate, improve your home, refinance or any other situation that requires a mortgage loan, we will take care of you. Over the years, we have built strong relationships with all of the major players in our industry: Real Estate Agents, Appraisers, Title Companies, Insurance Agents, etc. These relationships, coupled with our outstanding customer service, promise to deliver an experience that is second to none.