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Justin Herring's Blog

Atlanta's #1 Home Loan Expert

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  • Rules for Dropping Mortgage Insurance on an Atlanta Home Loan?

    Posted Under: Home Buying in Atlanta, Financing in Atlanta  |  July 8, 2012 5:54 AM  |  371 views  |  1 comment

          

          Rules for Dropping Mortgage Insurance

    What you should know!

    But what do the PMI termination rules really mean to the average person?

     

    Dropping Conventional Mortgage Insurance Rules:

    §  Automatic Termination

    o   Fixed Rate & Adjustable – Removed when reduced to 78% LTV

    §  LTV based upon ORIGINAL VALUE

    §  Based SOLEY on regular amortization (not prepayment of principal)




           Additional Requirement:

    §  Mortgage payment must be current

     §  Borrower Requests Termination

    o   Fixed & Adjustable – Removed when reduced to 78% LTV

     Additional Requirements: 

    §  Submit cancellation request in writing

    §  Good payment history

    §  Current on mortgage payments

    §  Appraisal or Certification that property value has not decreased BELOW the original value

    §  No 2nd liens or subordinated loans on property

     

    Dropping FHA Mortgage Insurance Premium Rules:

    Loans closed PRIOR to January 1, 2001 are NOT eligible for termination of MIP (monthly insurance premium) if closed on January 1, 2001 and after, MIP will be automatically terminated under the following conditions. 

             More than 15-year term

      • Must pay for 5 years AND
      • 78% LTV based on original LTV

             15-Year Term or less

      • If original loan amount is 78.01% or more, of the original appraisal value, MIP will be terminated at 78%
      • 5-year minimum payment waived
      • If original loan amount is 78% or less, of the original appraisal value, NO monthly MIP will be charged.

     

    NOTE: Loan-to-Value for purchases based on the sales price or appraisal value, whichever is lower

                Loan-to-Value for refinances based on appraisal value

                Loan-to-value figured on base loan amount WITHOUT UFMIP

    For more info contact Justin Herring at 404-312-3459 or justin.herring@southeastmortgage.com

    Roswell | Alpharetta | Cumming | Woodstock | Canton | Marietta | Norcross | Buckhead
    Sandy Springs | Brookhaven | Duluth | Midtown | Decatur | Kennesaw | Smyrna

    Atlanta Real Estate

     

  • Maximum Seller Contributions Chart?

    Posted Under: Home Buying in Atlanta, Home Selling in Atlanta, Financing in Atlanta  |  July 7, 2012 8:57 AM  |  2,531 views  |  2 comments

     

    Fannie/Freddie/FHA/VA/USDA

    Maximum Seller Contribution Chart

     

    With all the mortgage rules changes, I know it’s difficult to keep updated on exactly how much money a seller can contribute to helping a client buy a home.  Here’s a handy chart that covers all the loan programs and the percentage the seller can pay.

     

     

    FNMA

    FHLMC

    FHA

    VA

    USDA

    Owner Occupied

    LTV/CLTV

     

    90.01 or greater

    75.01 to 90.00

    75.00 or less

     

     

     

     

    3%

    6%

    9%

    6%

    Maximum all loans

    4%

    Closing cost & points

     

    Plus up to 4% sales concession

     

    Total: 8%

     

     

    No Seller Contribution Limit*

     

    Closing cost can also be financed up to 100% of appraised value.

    Non-Owner Occupied

    2% Maximum all LTV’s

    N/A

    N/A

    N/A

    FNMA

    Homepath

    Follow standard maximum’s with the exception of LTV’s over 90% allow up to 6% concessions

    N/A

    N/A

    N/A

  • What Do You Mean It Sold?

    Posted Under: Home Buying in Atlanta, Financing in Atlanta  |  June 19, 2012 7:11 AM  |  365 views  |  4 comments


    Dear Buyers Who Were on the Fence,

     

    Yes, I know it was a charming place. Yes, I know it fit almost 100% of your hopes for your next home. I remember when we toured the property and you shared your thoughts with me about what you loved and what you wanted to change. I was almost certain you’d found a place you could call home. I was even ready to write the offer in the car.

     

    But then a funny thing happened. You decided to wait. True, maybe we hadn’t seen all of the houses you wanted to tour. True, it’s a big investment, and you want to be sure you’re making the right choice. When I inquired about writing an offer, you said: “Well, it’s almost perfect... but let’s keep looking.”

     

    I felt that fear in my stomach for you. I advised you that this seemed to be a good fit for your criteria. Perfection is hard to find.

     

    A week went by, you were considering your options. You’d watched the news and felt certain that the housing market wasn’t in much of a recovery. There was no rush, the numbers told you. I wish they had been the numbers that mattered. I called, but life gets busy.

     

    When my phone rang, and you were ready to write the offer, I had to give you the bad news: The house was under contract. What’s more, there had been two bids for the property, as it was quite a gem in the neighborhood and priced well. In fact, it wasn’t the only one on our list that had just gotten away.

     

    Believe me, I felt your disappointment. “But we were just about to make an offer!” you said. I consoled you the best I could, but I know the sting of regret.

     

    It’s happening more often now. Great houses at fair prices available at excellent interest rates are moving. Don’t worry, we’ll find you a place you can love. I’ll work to make it happen with you. I can only hope the next time you feel that magical pull of a place you can call home, we’ll show the sellers how serious we are.

     

    Sincerely,

     

    Your Real Estate Agent

     

    Now is the time to buy. Contact me to start your search or the mortgage process today:  Justin Herring 404-312-3459 or justin.herring@southeastmortgage.com

     

    Contact Us: http://AtlantaRealEstateMortgage.com/contact.asp  

  • Do You Need A Second Opinion?

    Posted Under: Home Buying in Atlanta, Home Selling in Atlanta, Financing in Atlanta  |  June 15, 2012 6:44 AM  |  362 views  |  No comments

    Have you already been pre-approved for a mortgage?  If I were you, I’d call for a “second opinion.”

     

    If you have already been pre-approved or pre-qualified for a mortgage on you next home, are you absolutely sure you are getting the best deal?

     

    I’m not talking about interest rate either.

     

    I’m talking about the structure of the deal itself. 

     

    Donald Trump, in his book called “The Art of the Deal,” said, “The price that you pay is the least of his worries in the transaction.  It’s how the deal is structured that matters most.”  You could have been quoted a wonderful interest rate, but if your financial house is not in order, the best interest rate could be the worst loan.

     

    Here are some things I would advise you about:

     

    1) Should you decrease your down payment and use the cash to pay off high balance credit cards?

    2) Should you pay points or look at a no point loans?

    3) Did anyone show you how to save thousands of dollars in interest by taking out a 25-year versus a 30-year mortgage?

     

    If your lender did not talk with you about any of these issues, then you definitely need a "second opinion".

    Call or email me to and we can talk:
    Justin Herring
    404-312-3459
    justin.herring@southeastmortgage.com
    http://AtlantaRealEstateMortgage.com

     

  • Is This Too Much House For Me In Atlanta

    Posted Under: Home Buying in Atlanta, Financing in Atlanta, Rent vs Buy in Atlanta  |  June 11, 2012 5:42 PM  |  331 views  |  No comments


    -Give yourself time before making any emotional decisions!
    -Payments should be no more than 1/3 of your gross income before taxes.
    -Consider other costs such as taxes, insurance, repairs and association fees
    -Try to put 20% if possible, but is not needed
    -Set aside income in the event of an emergency or repairs

    For more info call Justin Herring at 404-312-3459 or justin.herring@southeastmortgage.com

    Or http://atantarealestatemortgage.com
  • How Do I Get Pre-Approved for an Atlanta Home Loan?

    Posted Under: Home Buying in Atlanta, Financing in Atlanta, Rent vs Buy in Atlanta  |  June 7, 2012 4:33 PM  |  321 views  |  No comments


    Before you even start shopping for an Atlanta home, you'll want to be sure you have financing in place to make your next purchase.

    Getting a "pre-approval" from a reputable lender is one of the first steps in your home shopping process.

    Watch this video for more details and call Justin Herring at 404-312-3459
  • No Better Time To Buy A Home In Atlanta, GA

    Posted Under: Home Buying in Atlanta, Home Selling in Atlanta, Financing in Atlanta  |  May 17, 2012 7:25 AM  |  311 views  |  No comments
    Interest Rates and Home Prices are Extremely Low so Don't Miss Out Trying to Wait For The Bottom!  Watch Video Below


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