Obama reduces refinance costs for FHA mortgages – Mar. 6, 2012

Borrowers with some federally insured mortgages will be able to refinance into lower interest rate loans more easily and cheaply under a plan unveiled Tuesday by the Obama administration.At a news conference, President Obama announced that the Federal Housing Administration will cut upfront fees for refinanced loans it already insures.The new fees are for borrowers whose FHA loans were issued before June 1, 2009. An estimated 2 to 3 million borrowers could take advantage of the savings, which could reduce mortgage payments for the typical FHA borrower by about a thousand dollars a year, according to the administration.”Its like another tax cut in peoples pockets,” said President Obama.Borrowers who refinance their existing FHA loans will pay an upfront insurance premium equal to 0.1%, the lowest allowable rate, of the mortgage amount — $100 for a $100,000 loan — plus an annual fee of 0.55%.The new refinancing fees contrast sharply with the cost of obtaining a FHA loan, according to Jaret Seiberg, an analyst with the Washington Research Group. A borrower making a 3.5% down payment on a home purchase as of April 1 will pay a 1.75% upfront fee and a 1.25% annual fee. Those purchase fees were raised barely a week ago to improve the FHAs capital reserve.

via Obama reduces refinance costs for FHA mortgages – Mar. 6, 2012.

S.M.A.R.T. Goals

A lifetime ago I was a volleyball player at Purdue University. While my overall athletic endurance and young “spry” step are gone, what remains are the lessons learned from 4 years of intense training. The most important thing I took away was how to set, monitor, and achieve my goals. I make “New Year’s Resolutions” every year; most people I talk to don’t take the time to sit down and think about what they want to accomplish for the upcoming year. I think that is a wasted opportunity to achieve a greater potential of your God-given talents. That’s why this time of year can be so inspiring; it’s a chance to change your life! Here’s a way to set S.M.A.R.T. goals, via Top Achievement (http://topachievement.com/smart.html)- I’ve listed a few of my goals at the end…

     Specific-Measurable-Attainable-Realistic-Timely

• Specific: A specific goal has a much greater chance of being accomplished than a general goal. To set a specific goal, you should answer the six “W” questions: Who, What, Where, When, Which, and Why.
• Measurable: Establish concrete criteria for measuring progress toward the attainment of each goal you set. Ask yourself, “How will I know when this is accomplished?”
• Attainable: When you identify goals that are the most important to you, you begin to figure out ways you can make them come true. You develop the attitudes, skills, and financial capacity to reach them. You begin seeing previously overlooked opportunities to bring yourself closer to the achievement of your goals.
• Realistic: To be realistic, a goal must represent an objective toward which you are both willing and able to work. A goal can be both high and realistic; you are the only one who can decide just how high your goal should be. Your goal is probably realistic if you truly believe that it can be accomplished.
• Timely: A goal should be grounded within a time frame. With no time frame tied to it there is no sense of urgency. If you want to lose 10 lbs., when do you want to lose it by? “Someday” won’t work.

Here are a few of my goals for 2012: to go on a date with my husband once a month, to take some time to just be quiet and slow down (to breathe, to be thankful), to create a positive experience for every client, to actively donate time to a charity, and to read the Bible every day.

What are you planning to accomplish in 2012? I’d love to know!  If you’d like to save more money for your child’s education, take a special vacation, or pay down some debt  consider refinancing your mortgage. I’m helping many friends save hundreds (and even thousands) of dollars – many times at no cost!  If your mortgage interest rate is over 4.125%, call me today and let’s see if I can help you. Please feel free to pass along to any of your friends who could benefit by a 10 minute mortgage analysis.

Sincerely,

Linda Fox

630-606-0261 (c)

lindafox@avenuemortgage.com

Even if your home is underwater, new HARP guidelines may be able to help you save money

I wanted to pass along an idea that may help you or someone you know…

Very recent changes to the government refinance programs for Fannie Mae & Freddie Mac-owned mortgages are providing many people – who had previously been unable to refinance – the opportunity to do so at phenomenal rates!

If you haven’t refinanced since May of 2009, check to see if your mortgage is owned by Fannie Mae or Freddie Mac (links to the web sites are below).  If your mortgage is owned by one of those two, and if it was with Fannie or Freddie PRIOR to June 1, 2009, then you may very well be eligible to refinance, even if you owe more on your home than the home is worth.

Here is an example of a loan I got approved this week :

Lisle – owes a combined $278,000 and the home is worth $240,000 for a 116% combined loan to value. I have them approved on a 30 year fixed at 4.115% with no closing costs. They are saving $138/month.

The appraised value of your home may have declined, and as such, refinancing the “normal way” – even to a lower rate – would be prohibitive as it would normally include PMI.  With these new program changes however, a refinance may now be a real possibility and may save you a bunch of cash.

THE KEY – and this is very important – is that your CURRENT loan must have been Fannie Mae or Freddie Mac-owned PRIOR to June 1, 2009, and that you don’t currently have Mortgage Insurance.

Here are the links to both web sites you can use to check and see if your loan may be one of those eligible for this special refinance program: (or give me a call and I will check for you).

Fannie Mae’s site:  http://www.fanniemae.com/loanlookup/

Freddie Mac’s site:  https://ww3.freddiemac.com/corporate/

Let me know if you have any questions!

“Welcome to My Blog” Video

Obama Pledges to Refinance Millions of Mortgages at Today’s Rates

09/08/2011BY: CARRIE BAY

Housing got only a brief mention in President Obama’s highly anticipated jobs speech Thursday night. But it was a pledge that some pundits say is finally a step in the right direction. Others say it’s likely to have little impact.

Obama told Congress that his administration is going to work with federal agencies to refinance millions of homeowners’ mortgages at today’s record-low rates.

With those rates now near 4 percent, the president says the move could “put more than $2,000 a year in a family’s pocket, and give a lift to an economy still burdened by the drop in housing prices.”

To read the rest of the article, click here: http://www.linkedin.com/news?actionBar&articleID=759829308&ids=0NdzsUejcVdjsIe30Pej8UejkTb3oPc3gPdPwRdOMPd3cOc3wVdjsIdjAUd30SejkT&aag=true&freq=weekly&trk=eml-tod-b-all-44&ut=2e_LEcPJy3AkU1