May 2nd, 2013
Because interest rates have dropped so much, the Santa Clara Stadium Authorities are refinancing the $850 million loan. This will save the project around $90 million.
So if you’re thinking about refinancing, now is the time to start talking to a certified loan officer about your situation. On June 3rd, the new FHA rules go into affect which tighten lending standards and increase some fees like the FHA’s mortgage insurance fund which acts like a primary mortgage insurance (PMI) against default.
Probably the biggest change that will impact you and your money is that if you put down less than 10% of the loan, you will be required to pay the mortgage insurance for the life of the loan or 11 years depending on how much was financed. Before you could request it to be removed after you owned 22% of the house.
If you require a jumbo mortgage (over $625,500), then you will be required to put down 5% rather then the current 3.5% down payment.
Because of all the refinancing, mortgage rates are expected to rise. Even a quarter of a percent can make a big difference in your monthly payment.
There’s a tip going around stating that mortgage rates are higher on Monday and Friday and lower in the middle of the week. Talk to a reputable loan officer who will know when the rates are best for your financial situation. They will also be able to find a selection of mortgage lenders.
We found a useful article on Yahoo! Homes.
Often the con artists will bundle these, such as promising to get you a government loan and then lease it back to you. Never under any circumstances sign anything without independent verification first. Your loan officer can help you review these options to be certain it’s not a scam.