Did your credit score improve July 1st? Here is why.
Starting July 1 another portion of the National Consumer Assistance Plan will go into effect and it should have a big impact on credit scores. The Repositories; Equifax, Experian, and TransUnion will exclude public tax lien and civil judgment data that doesn’t meet the new minimum reporting standards. According to the Consumer Data Industry Association, new and existing tax lien and civil judgment data must include a person’s name, address and either a Social Security number or date of birth in order to be included in credit repository file.
Consumers that have had a tax lien filed against them, have a 50 percent chance that it was and error and won’t show up on their credit report anymore.
Improved dispute process, the repositories will now share disputes between them to improve data accuracy. The Repositories will also, monitor data furnishers for adherence to the announced reporting requirements and take corrective actions against data furnishers for noncompliance.
Medical bills will now be required to wait for 180-days before they are allowed to be recorded on a credit report as due for collection. That should give consumers and their medical provider’s more time to resolve insurance payments and other billing issues before the debt shows up on the repository file.
Last September, The National Consumer Protection Plan limited the debt that could be reported without the proper agreement with the consumer. That stopped the reporting of things like library fines and traffic tickets. This agreement helps consumers because it makes the credit profiles more accurate. Stay tuned to our Blog for more information on the National Consumer Assistance Plan there is more to come. If you are ready to start the mortgage process now and get a Fannie Mae conditional approval in just minutes try our SNAP mortgage process.
Fannie Mae announced last week that they would provide relief for those looking to purchase or reduce student loan debt. Before April 27th, 2017 a home buyer looking to purchase a home would have to count 1% of their student loan balances as a monthly payment and include that in their debt ratio regardless if the payment was a lower income based repayment. That was a huge hurdle for a lot of home buyers with student loan here in the Fenton Michigan area. With the changes released last week, we can now use whatever payment appears on the credit report! However, if the credit report reflects a $0 monthly payment because the loans are currently not in repayment, we still have to count 1% of the balances in the monthly payment.
As of today, FHA or Rural Development have not followed Fannie Mae's lead, but hopefully will soon. VA loan qualification will still allow military and veteran home buyer's to exclude student loan payments from their debt ratio if they are deferred for a minimum of 12 months from the date of closing. If a parent has been paying your student loan payment for your monthly for a minimum of 12 months, the monthly payment may be excluded from your debt to income ratio with proof of the 12 months of payments.
To help assist current homeowner's with reducing student loan debt, Fannie Mae is allowing current homeowner's to pull cash out of their homes to pay off student loans without the typical increased interest rate that comes along with a cash out refinance. The maximum loan that a borrower can have is 80% of their current homes value which must include their current mortgage loan balance, closing costs (if you do not pay them out of pocket or have the lender credit them) and student loans. With values on the rise, this may be a good opportunity for some current homeowner's to payoff high interest student loans and deduct the interest on the new mortgage loan balance.
For more information, contact me at 810-444-0024 or Jim@LoanJim.com.
Jim PapatheodoreMichigan Mortgage Loan OfficerNMLS ID 131478Serving Fenton, Brighton, Grand Blanc, Clarkston and surrounding areas of Michigan.
The next time you are in the Fenton area dropping off documents to my office or are just out and about, you've got to give Crust a try! I was there the other day and got the #1 Bialy Egg Sandwich with Vermont Cheddar and Applewood smoked bacon....WOW! Thank you can I have another?!They serve breakfast and lunch, have fresh loaves of bread, pies, sandwiches, coffee, cookies, cakes and a lot more!
I love it because the everything is prepared using unbleached/unbromated flour that is non-GMO! Crust produces over 120 different baked goods and all are handcrafted using traditional baking methods.
So, give it a shot or don't....but if you don't you are missing out!
Click here to learn more about Crust.
Jim PapatheodoreMortgage Loan OfficerNMLS ID 131478www.LoanJim.comJim@LoanJim.com810.444.0024
100 S Adelaide St.Fenton, MI 48430
Serving Fenton, Grand Blanc, Holly, Linden, Brighton, Clarkston and surrounding Michigan areas!
Introducing SNAP Mortgage! We created SNAP Mortgage with convenience in mind. Now you can combine a complete digital experience with the expertise of a local mortgage lender.SNAP Mortgage enables borrower's to instantly retrieve the required documents and automates the mortgage process. Mortgage 1 Inc. is already a leader in Conventional, FHA, Rural Development and VA lending, we've created SNAP Mortgage to enhance the client experience.
When choosing a mortgage, most people choose the 30 year fixed option as it has been the industry standard for quite some time. But, what about the 15 year mortgage? Should you consider going with the 15 year over the 30 year?
Sure your payment will be higher than the 30 year, but how much higher? Can you afford the 15 year payment and cut your loan term in half? Did you know that the 15 year rate is lower than the 30 year rate (as of 1/10/17)?
Click here to read more about qualifying and the difference you will pay in interest!
For current Michigan mortgage rates and other 30 vs 15 year qualifying information, please contact me at the information below.
Jim PapatheodoreMichigan Mortgage Loan OfficerNMLS ID 131478Jim@LoanJim.comwww.LoanJim.com810.444.0024
UPDATE 1/20/17 - Within hours of being sworn into office, Trump repealed the decrease in FHA mortgage insurance premiums which was one of the last minute policy actions. Read more here.Great news! The FHA will be lowering the monthly mortgage insurance premiums for loans closing/funding January 27th, 2017 and later. The new rates are projected to save homeowner's $500 per year.
FHA increased the rate about 4 years ago to replenish a depleted fund after the foreclosure crisis. Currently the monthly premium is .85% of the loan amount, divided by 12 and added to the monthly payment. Now that premium will be .60%.
Click here to read more or click here for more information regarding Michigan FHA mortgage loans.
Since the election, mortgage rates have shot up about 1%! Rates were so low and stable for so long, we forget that when they do increase, then can affect not only your monthly payment, but your purchasing power!
So, what happens when rates increase? Let's take a look.....
Using a $150,000 loan amount as an example. At a rate of 3.750%, the principal and interest payment would be $694.67. At a 4.750% rate, the payment would be $782.47. That's an increase of $87.80! That's quite a jump if you are trying to stay within a budget.
However, that's not the only thing to consider with the recent rate increase. How about purchasing power? Let's say you qualified for a max mortgage payment of $694.67 at the 3.750% rate. Now that the rate has increased and the payment has increased by $87.80, the max loan amount you will qualify for is $133,000. That's a decrease of $17,000 in purchasing power!
If you have been shopping for several months and have not been in contact with your mortgage loan officer since the rate increase in November 2016, you may want to reach out to them and make sure that you still qualify for the amount you originally did and make sure your monthly payment is still affordable.Click here to see how much you can qualify for (no credit check).
Feel free to contact me with questions at the information below.
Jim PapatheodoreMortgage Loan OfficerNMLS ID 131478www.LoanJim.comJim@LoanJim.com810.444.0024Serving Fenton, Grand Blanc, Holly, Linden, Brighton, Clarkston and surrounding Michigan areas!
Just released!! USDA's Upfront and Annual Fees are Getting Smaller....
On October 1, 2016, both the upfront guarantee fee and annual fee for purchase and refinance loans will decrease. USDA (Rural Development) is reducing the upfront guarantee fee from 2.75% to 1%, and the annual fee (charged monthly) from .5% to .35%.
Here is even better news.....
The underwriting system will be updated on August 31, 2016, to allow lenders to select and underwrite using the new fee schedule.
This is great news! Not only are the fees decreased significantly, but as of August 31st, loans can be submitted using the new lower fees for borrower's that will be closing after October 1st.
So, apply for your Michigan Rural Development loan now by completing my online loan application and take advantage of the new low fees and one of the only zero down home loans available!
Please contact me with any questions at 810-444-0024 or Jim@LoanJim.com
Jim PapatheodoreMortgage Loan OfficerNMLS ID 131478
Rural Development announced that the upfront guarantee fee will change from 2 percent of the loan amount to 2.75 percent of the loan amount beginning October 1st 2015. The annual (monthly) fee will remain unchanged.
For any questions and any other information about Michigan Rural Development loans please contact us.
Rural Development made changes to the fees that are allowed to be paid by the seller. These changes impact transactions where real estate offices charge a fee to the buyer for record retention, real estate compliance fee etc. Here is the actual rule.....
The fee can be paid by the buyer, but cannot be included in seller concessions. If the buyer is expecting their earnest money deposit (EMD) back at closing, which happens with Rural Development loans often, the real estate fee will be taken out of the EMD.
For example, if your earnest money deposit is $1,000 and the real estate compliance fee is $300, you would receive $700 back instead of your full $1,000 EMD.
Please contact me if you have any questions.
If you are interested in being pre-qualified for a Michigan Rural Development Loan, please click here.