2 Dramatic FHA Mortgage Changes and the NEW Good Faith Estimate 2010

Expect Fun and Excitement On My Blog In The Coming Weeks!

You know I love mortgages, it's one of the biggest financial decisions you'll make in your life. However, I'm more concerned with your preparation for a mortgage so you're well qualified when it's time to buy. Plus, I want to make my videos fun, interesting, and exciting! In the coming weeks, I'll be inviting local business owners on my blog to help you make better financial decisions and live a financially responsible life so you can own the beautiful home of your dreams. Stay tuned - I'm very excited for what's to come.

Now, on to business....

2 Dramatic Changes to FHA Mortgages You Must Know

We have some very important FHA mortgage changes in the late spring / early summer. They have decided to increase the upfront mortgage insurance premium from 1.75% to 2.25%, which means it's going to cost you or your client more to purchase or refinance a home.

The second big change, seller concessions, will reduce from 6% to 3% leaving the seller less flexibility to help you buy their home. What does that mean? It's time to buy the house you've been waiting to get a deal on - or you are going to pay more for your FHA mortgage if you wait.

How to Read the New Good Faith Estimate (Jan 2010)

Also, the new Good Faith Estimate went effective Jan 1st, 2010. It now guarantees the interest rate and closing costs so there are absolutely no surprises at the closing table. I put together a video that outlines the new Good Faith Estimate so you know what to expect (and how not to get taken advantage of). Believe me, it's complicated, but I'll break it down for you so you can understand where every penny of your money is going when buy a mortgage. Remember, there are many tricks shady mortgage companies can use to hire their true compensation - watch my video so you're the smartest person in the room. ===>