Sunday, February 24, 2013

FHA Mortgage Insurance is Going Up


FHA mortgage insurance is getting more expensive.  At the moment, some FHA loans are exempt from mortgage insurance.  Beginning in April, all FHA loans (with very few exceptions) will require mortgage insurance, regardless of the down payment or the term of the loan (15 year or 30 year).  The cost of the mortgage insurance will also increase from the current rates.

In addition, beginning in June, the mortgage insurance will last a minimum of 11 years if you put 10% down, and it will never go away if you have less than 10% down.  It no longer matters how much equity you build in your house - the mortgage insurance will remain in place for either 11 years or for the life of the loan.

If you are refinancing an existing FHA loan that was endorsed (insured) by FHA prior to May 31, 2009, then the new rules above do not apply.

If you currently have an FHA loan and plan to keep it, then nothing will change.  Your mortgage insurance rate will remain the same as it is now and the mortgage insurance will go away when you have 22% equity in the house, or in 5 years, whichever is longer.

How will these new rules affect the real estate industry?

Probably not very much, although you are sure to read many reports about how the government is trying to kill the housing industry.  In reality, the cost of a loan will only increase slightly.  The payment on a 30-year FHA loan for $200,000 will go up by $16.67 a month.  That's not going to keep many people from qualifying for a loan.

The important thing to keep in mind is that FHA loans only require 3.5% down, they have very low interest rates, and they are easier to qualify for than a conventional loan. 

Give us a call with any questions about the new FHA rules or anything else related to mortgages.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Does it Cost Anything to Get Pre-Approved for a Mortgage?


We are often asked if it costs anything to get pre-approved for a mortgage. 

The answer is NO, it shouldn't cost you anything.  There should be NO charge to pull your credit, and there should be NO application fee.  If a lender charges you an application fee, they are trying to prevent you from shopping around for the best deal.

The pre-approval process is free and easy.  Here's what happens:
  • The lender gets some housing and financial information from you.  This can usually be done in about 15 minutes on the phone.  Never complete a loan application yourself or fill one out online.  You will probably make mistakes and it is a huge waste of your time to do it yourself.
  • The lender then pulls your credit.  This takes about a minute.
  • Next, the lender enters all of your information into an online underwriting software program provided by Fannie Mae or Freddie Mac and the software tells the lender how much you are pre-approved for.
  • Then, the lender checks the underwriting guidelines of the individual investor who will sell you the loan, to make sure that there aren't any additional guidelines that are stricter than the Fannie Mae or Freddie Mac guidelines.
  • Finally, the lender checks the underwriting guidelines of the mortgage insurance company that will insure your mortgage.  This only needs to be done if the loan is a conventional loan (not an FHA loan or a VA loan) and if you have less than 20% down.
  • Once the lender knows that you are pre-approved to get a mortgage and that the underwriting guidelines for Fannie Mae, the individual lender, and the mortgage insurance company have all been checked, you can shop for a house with confidence, knowing that your loan meets all the current guidelines.
 Need a pre-approval for a mortgage?  Give us a call and we'll get started.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Latest Down Payment Requirements


Here are the latest down payment requirements for various types of loans in Colorado.  

For conventional (non-government) loans:
  • 5% down for a primary residence (3% is allowed, but the rates are higher and the mortgage insurance is higher)
  • 10% down for second homes 
  • 20% down for investment properties
For FHA loans (primary residences only):
  • 3.5% down - can be a gift from a relative of the borrower
For CHFA loans (primary residences only):
  • $1,000 minimum investment by the borrower - can be a gift from a relative of the borrower
VA loans (primary residences only):
  • 0% down

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Friday, February 22, 2013

Latest Mortgage Scams


There are many ways in which you are targeted by dishonest businesses after you purchase or refinance a house.  Here are three that you should know about:
  • You receive an official looking notice that tells you to send in $89 to receive a copy of your deed, so you have proof that you actually own your house.  Do not do it.  When you purchase a house, the title company records the deed for you with the County Clerk and the Clerk will send you a copy.  You already paid for this at the closing.  If you are refinancing, rather than purchasing a house, you already have the deed from when you purchased the house.  If you ever need another copy, you can get one from the County Clerk for a few dollars.
  • You receive an official looking notice saying that you can purchase insurance to pay off your mortgage in case you are disabled or die.  Do not do it.  If you want additional insurance, call your insurance agent and get a regular life insurance or disability insurance policy.  It will be much cheaper.
  • You receive an official looking notice saying that you can save thousands of dollars by paying your mortgage every two weeks, rather than once a month.  What they don't tell you is that they are going to charge you for it.  If you want to pay your mortgage off early, all you have to do is make an extra principal payment when you have some extra money.  There is no charge for it and you will not be locking yourself into being forced to make a payment every two weeks.  If you want to make an extra payment each year, just divide the monthly payment by 12 and add that to your mortgage payment each month.
Why does this happen?  When you purchase or refinance a house, certain documents get recorded with the County Clerk and become public records, meaning anyone can see them.  There are many unscrupulous businesses who look up the public records and prey on people who don't know they are getting ripped-off. 

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Inspection Resolution Warning


Remember that the new Inspection Resolution form for Colorado real estate transactions has changed and it is now an amendment to the sales contract.  That means it must be given to the lender, who must in turn give it to the appraiser and the underwriter. 

That could open up a can of worms, so be careful about what you put in the Inspection Resolution. 


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

2013 Conventional Loan Limits


Fannie Mae and Freddie Mac have announced that the loan limits for Colorado will remain the same in 2013.  Here are the limits for the Metro Denver counties:
  • One unit = $417,000
  • Two units = $533,850
  • Three units = $645,300
  • Four units = $801,950
If the loan amount is at or below the limits listed above, then the loan amount conforms to the Fannie Mae and Freddie Mac guidelines, and the interest rate will be cheaper than it would be for a jumbo loan (a loan amount greater than the limits listed above).

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

2013 FHA Loan Limits


HUD has announced that the FHA loan limits for 2013 will remain the same as they are in 2012 throughout Colorado. 

The maximum FHA loan amount for 1-unit properties located in the Metro-Denver counties is $406,250.

The maximum FHA loan amount for 1-unit properties located in Boulder County is $460,000.

The maximum FHA loan amount for 1-unit properties located in El Paso County is $325,000.

Remember - there are no income limitations for FHA loans, and the required down payment is only 3.5% of the purchase price.

Need an FHA loan?  Give us a call.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.