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Refinancing real estate

by Michel Delos Santos

We're constantly bombarded by lenders to refinance our mortgage under a variety of programs. The volume of offers can almost make you numb to the rational consideration.

There are common rules of thumbs that homeowners and agents use such as not refinancing more often than every two years or there must be at least 2% savings from your previous mortgage rate may not always be accurate.

The reality is that if you can refinance for a lower rate and you'll be in the home long enough to recapture the cost of refinancing, it should be considered. The costs of previous refinancing that haven't been recaptured by monthly savings may need to be added to the costs of the new refinance.

Take a look at the chart that shows the average rates according to Freddie Mac for 2012. They are lower today than they were in January of 2012 and for the ten years before that.

Refinancing may save you a substantial amount of money, especially if you're going to be in your home for a long time. It is definitely worth investigating. To get a quick idea of what your savings could be, use this refinancing calculator.

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    5 Best Edgewater FL Homes for Sale under 116K

    by Michel Delos Santos

    * 5 Best Edgewater FL Homes for Sale under 116K *

    1. 3232 Umbrella Tree, 3/1, 82K.
    2. 1720 Queen Palm, 3/2, 89K.
    3. 1846 India Palm, 3/2, 104K.
    4. 2616 Royal Palm, 3/2, 107K.
    5. 3030 Juniper, 3/2, 115K.
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  • If you are thinking about buying or selling a home, give us a call at (386) 689-4684 or send us an email to explore your options and to find out when is the best time for you to make a move.

    FHA Mortgage Insurance Premium

    by Michel Delos Santos

    More Expensive Than Expected - 2/11/2013 

    The 3.5% down payment on FHA loans could be more expensive for buyers than expected. Beginning April 1, 2013, the mortgage insurance premium will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners.

    The staggering increase will occur on 6/3/2013 when FHA's policy on the duration of the required mortgage insurance will be increased for the life of the mortgage. It basically doubles the amount of total MIP if the loan is paid to term.

     Example: Purchase Price $175,000 
    with 3.5% down payment at 4% mortgage rate on 30 year term 


    Current

    After 6/3/13

    MIP duration

    78% of original loan

    Life of mortgage

    Cumulative premium

    $20,838.24

    $42,447.93

    Currently, the MIP is required for approximately 9 years 9 months with normal amortization. The new program would require the MIP for the life of the loan. In this example, the initial monthly MIP is $196.88 which decreases based on amortization.

    There are buyers that qualify on income and credit who may not have the necessary additional down payment required for 80% and 90% conventional loans. The 3.5% FHA program has provided a great vehicle to get into a home with a minimum amount of cash.

    For homeowners that expect to stay in their home for ten years or less, the new changes might not have much financial impact. Homeowners who expect to be in their home long term can refinance with a conventional loan without mortgage insurance once the equity has increased due to amortization and appreciation.

    For buyers to avoid these increases, they will need to act now to get the FHA commitment issued prior to these change dates.

    If you are thinking about buying or selling a home or condo, give us a call at (386) 689-4684 or send us an email to explore your options and to find out when is the best time for you to make a move.

     

    Mortgage Rates Moving Forward

    by Michel Delos Santos

    If you want any information on New Smyrna Beach and Edgewater FL homes or condos you want to invest in, please email us at mikeytherealestateman@gmail.com or call us at 386 689 4684. Also at your fingertips are these useful free links:

    Return on Investment in Real Estate

    by Michel Delos Santos

    If you want any information on New Smyrna Beach and Edgewater FL homes or condos you want to invest in, please email us at mikeytherealestateman@gmail.com or call us at 386 689 4684.  Also at your fingertips are these useful free links:

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