Traci Gregory, Financier

We are an FHA Direct Endorsed Lender

I’ve read with dismay about the people giving up their houses, going to credit counseling, trying to make ends meet.

The biggest bill most of us pay is for rent or for our mortgages, and for some reason the news makes it appear that there is no mortgage money when in fact there is quite a lot.

The credit crunch could affect mortgage money availablity, but it has not. 

I’ve been a mortgage banker for 20 years . . . and I know that refinancing a $250,000 mortgage that is at 7% ($1630/month)  to 6% or less ($1498/month)  would make a positive change in any budget.

• People with questionable credit can refinance with an FHA loan, even if their loan isn’t an FHA backed loan now.
• Streamline refinances are done with no appraisal, and in a lot of cases, reduced fees, to help homeowners stay in their houses.  For conventional AND FHA loans.

This is a time to hunker down, figure out how we’re going to get through the next few years, and giving up the time and money we have invested in our homes is not a good way to start a hard run!

I understand that Cobb County’s revenues for intangible taxes and real estate filing fees was averaging between $2 and $3 MILLION a month in 2007.  Now, they are at less than $300,000 a month.  Even the local government is feeling the pinch of the fall in real estate business.

I recommend that everyone who owns a home and is paying more than they are comfortable with look hard at all the options for refinancing and lowering their payments, particularly if they want to get into a 30 year fixed rate, plain vanilla, feel-safe-to-everyone mortgage.

I also highly recommend that the Real Estate Professionals in the area get more familiar with FHA and for people outside Cobb County, Rural Development loans.  THAT MONEY IS WAITING TO BE SPENT!

There IS down payment assistance money – for homeowners who don’t have cash to close.  We can revive the economy on a local level, but only if we don’t give up on it.

CHANGES TO FHA MORTGAGE INSURANCE PREMIUMS

FHA Single Family Mortgage Insurance Starting Monday July 14, 2008, for the first time EVER, credit scores will determine loan terms on an FHA Loan Details are Borrowers with no score or at least  500 may get an LTV >90%; see matrix below. Borrowers with a score under 500 get a maximum LTV of 90%. Borrowers without scores will require manual underwriting. Depending on score, Upfront Mortgage Insurance Premiums will range from 1.25% to 2.25%. Depending on score, Monthly Mortgage Insurance will range from .50% to .55%. The premium is based on the borrower with the lowest score. If one of the borrowers has no score, then the Non-Traditional credit grade is used. Credit rescoring is allowed to improve a borrower's credit grade. All FHA Secure refinances >95% LTV with delinquencies have a 2.25% UFMIP and .55% MMI. These changes apply to purchases, cash-out refinances, rate & term refinances, and non-delinquent FHA Secure refinances. UPFRONT AND ANNUAL MORTGAGE INSURANCE PREMIUM RATES Effective July 14, 2008  for Loan Terms Greater than 15 Years
All premiums are shown in basis points - 0.01%
	Credit Score
LTV	300-499	500-559	560-599	600-639	640-679	680-850	Alternative Credit
Less than 90%	175/50	175/50	150/50	125/50	125/50	125/50	150/50
90.01% - 95%	Not Available	200/50	175/50	150/50	125/50	125/50	175/50
Over 95%	Not Available	225/55*	200/55	175/55	150/55	125/55	200/55
* First time Homebuyers WITH HUD APPROVED COUNSELING will be charged 200 basis points for the upfront MI