16th Annual Erie Town Fair & Balloon Festival

16th Annual Erie Town Fair & Balloon Festival

May 19, 2012

The Historic Downtown hosts over 200 craft and food vendors. Performances on stage at the Coal Creek Ball Park offer a variety of entertainment by local groups. Garage Rats Car Club hosts the annual Car Show attracting more than 60 cars and trucks. Traditional carnival games continue throughout the day at the Coal Creek Park. Hot Air Balloons launch at 6:15 am, weather permitting, on Friday, Saturday, and Sunday. The launching is open to the public. 

http://www.eriechamber.org/news-a-events/town-fair

So what's going on in today's wonderful marketplace?

Well who's really to say...
However, I just heard from a local realtor that 75% of the inventory under $180K in Thornton, CO is under contract
WHAT!!!!
So here's my two cents
IF YOU LIKE IT AND CAN AFFORD IT....BUY IT!!!!!

Talk to a local lender, not bank, local lender, one that works with your realtor preferably BEFORE...BEFORE...you go out looking.
Decide what you can afford on paper but more importantly, decide what you can afford in reality.
Once you establish your target monthly payment, your lender should relay that to your realtor. 
Here's the kicker...if you find a home that you LOVE and it fits your MONTHLY, don't haggle...it's not worth it.  The seller isn't winning, trust me...more sellers bring as much money to the table as the buyers do now...just be super stoked that you found a home that you can afford and your comfortable with the payment
So...if your realtor doesn't tell you this (because they are always super sweet about this), a lender should...it's not a game right now, there are more buyers than there is inventory so please, just go for it!!!
Oh and PS, if your target price range is maxed at $200K, DO NOT LOOK AT A HOME FOR $250K!!!
Trust me on this one....

Here's some interesting news on rates...hmmm....

http://www.mortgagenewsdaily.com/consumer_rates/249815.aspx


As always, I'm here to help, contact me if you have questions!!
Kim

FHA is increasing their mortgage insurance!!!

The bad news is below
The good news is that Conventional Loan Progams are getting a little easier to qualify for but the better news is that the mortgage insurance companies are opening up programs and guidelines to help buyers purchase homes for under 20% down!!

FHA TAKES ADDITIONAL STEPS TO BOLSTER CAPITAL RESERVES
New premium structure will help protect FHA’s MMI fund

WASHINGTON – As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans.  FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount.  Upfront premiums (UFMIP) will also increase by 0.75 percent.

These premium changes will impact new loans insured by FHA beginning in April and June of 2012.  Details will soon be published in a Mortgagee Letter to FHA-approved lenders.

“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market,” said Galante.  “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent.  This change is effective for case numbers assigned on or after April 1, 2012.  FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500.  This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount.  This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to permit financing of this charge into the mortgage.  This change is effective for case numbers assigned on or after April 1, 2012.

FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month.  These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan.  Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.

Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013.

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