HARP 2.0 (Home Affordable Refinance Program) will be “live” on March 17, 2012. NOW is the time to see if you will qualify for this great refinance program from the government. If you don’t I can refer you to an awesome Real Estate Professional that can give you great advice.

If you qualify, please email me for the “get ready” package now and send to me. This will get you started.

Remember, “knowing is always better than not knowing”….

I am here to help. Feel free to share this with your friends, co-workers and neighbors.

Sandy
Sandy@thekrestanteam.com

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. The 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.

“The temporary payroll tax cut continuation act of 2011″ requires FHA to increase the annual MIP it collects.

So on a $200,000 loan the upfront MIP will increase by $1,500.00 and the monthly payment will increase by $20.29 per month.

The Federal Housing Administration will raise mortgage insurance premiums this April in order to repair the health of its emergency fund.

The FHA said the changes will boost the Mutual Mortgage Insurance Fund by $1 billion.

For more information contact me at sandy@thekrestanteam.com or (602) 820-5166.
Here is a link to the HUD announcement http://portal.hud.gov/hudportal/HUD?src=%2Fpress%2Fpress_releases_media_advisories%2F2012%2FHUDNo.12-037

These rumors are all around. Every local and national news station hints to “some new program” in their sound bites on the 6 o’clock news and consumers want to believe it so they take it their word as the “gospel truth.”

Unfortunately, as it commonly occurs, there is a little truth inside every rumor. Can I reiterate…a little.

I thought I would send along some accurate data to shed some light to fact versus fiction. Over the past few days there have been several announcements from Washington regarding different initiatives moving forward. The FHFA (Federal Housing Finance Agency – Fannie and Freddie’s regulator) released information regarding proposed changes to HAMP (the Home Affordable MODIFICATION Program – not refinance) which can be found at the link below.

This morning the Obama Administration also sent a Press Release detailing the different programs and plans for additional changes to the current Making Home Arrodable Programs. It is important to understand that Lenders HAVE NOT implemented many of these changes, including the HARP 2.0 release (other than some current servicer to current servicer programs).

I hope this information helps shed some clarity to this topic for you and your customers looking to you as a resource and as more accurate information becomes available, I will let you know.

As always I look forward to the opportunity to assist you with their next refinance or purchase. Have a great week!

Sandy Krestan
602.820.5166 or Sandy@TheKrestanTeam.com
NMLS 153369
Licensed in Arizona & California

Link to the President’s Press Release:

http://www.whitehouse.gov/the-press-office/2012/02/01/fact-sheet-president-obama-s-plan-help-responsible-homeowners-and-heal-h

Consumers are often misled when it comes to the subject of the Federal Reserve and how it affects mortgage interest rates. Often the media is the culprit causing the confusion. Many times, the Fed has taken action that caused mortgage interest rates to move in a direction other than what consumers expected, because the media provided weak reporting on the subject.

The Federal Reserve affects short-term interest rate maturities, the Fed Funds rate, and the Overnight Lending rate. These factors have a direct impact on the Prime rate. If you took only this into consideration, you may mistakenly conclude that changes made by the Fed will cause a similar movement in mortgage interest rates. However, mortgage interest rates are dictated by the trading of mortgage-backed securities, which trade on a daily basis. The real dynamic at the heart of interest rate movement is the relationship between stocks and bonds.

Stocks and bonds compete for the same investment dollar on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally. When the market becomes bullish, the money to invest in stocks comes from the selling of mortgage-backed securities.

Unfortunately, selling mortgage-backed securities to fuel stock market rallies causes interest rates to go up, not down.

Historically, there have been many times when the Federal Reserve has increased interest rates. Stocks then sell off in fear that the increase will affect corporate profit margins, and the liquidated stock assets need a place to park until the next rally comes along. The safe haven is found in mortgage-backed securities which cause mortgage rates to drop.

The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. I make it a point to continuosly monitor interest rates for my clients, and advise them of opportunities to manage their mortgage debt at a better rate. This is the foundation of my business model as a Trusted Advisor.

Let’s discuss how we can better educate our clients on the largest purchase they’ll ever make!

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Sandy Krestan
The Krestan Team-Benchmark Home Mortgage
7025 E Greenway Pkwy Ste 250
Scottsdale, AZ 85254

© Copyright 2011. All About News, Inc.

You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you are wondering what this means…and if you can benefit…here are some facts to consider.

First, it’s important to realize that the president’s proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there is a big change: Now homeowners can refinance no matter how underwater they are! Before homeowners could only refinance if they were 25% or less underwater, and even then many banks only let people who were 5% or less underwater refinance.

Also, with the revision it’s possible that an appraisal won’t have to be performed, which is great news as this will save time and money. But this is only the case if Fannie Mae or Freddie Mac can electronically estimate the value through their valuation models.

Keep in mind that these updates to HARP apply only to people whose mortgage is currently secured by Fannie Mae or Freddie Mac…and whose loan was securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. So the chances are that people who have refinanced since May 2009 will not qualify to refinance under the HARP revision.

As of now, the revisions to HARP have been proposed by President Obama and the Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac. This directive has been given to Fannie Mae and Freddie Mac and they now have until November 15, 2011 to give guidance and details regarding how these changes will be run.

To read more details, you can visit the FHFA Web site. And if you have any questions at all about what these changes mean or how they could impact you, call or email me anytime. I’m always happy to help.

Sincerely,

Sandy Krestan
The Krestan Team-Benchmark Home Mortgage
Sandy@TheKrestanTeam.com

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You are receiving this email as a result of your ongoing business relationship with Sandy Krestan. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials.

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Sandy Krestan
The Krestan Team-Benchmark Home Mortgage
7025 E Greenway Pkwy Ste 250
Scottsdale, AZ 85254

© Copyright 2011. All About News, Inc.

I am often asked about the different types of insurances that surround real estate. And while I am no expert on the topic, I do feel qualified to give an overview and some insight to assist you in asking intelligent questions to true insurance professionals. So, here it goes:
■Homeowner’s Insurance covers the replacement cost of the home and is required by lenders to ensure that their collateral (the home) will be replaced in case of damage. The amount of the policy need not include the value of the land. There are variables in cost by company and by the amount of the deductible. Many people include riders to their homeowner’s policy for personal property (like jewelry) or get discounts because they tie it to their auto policies, etc. Recognize also that policies vary for owner occupied homes to second homes to vacation homes to investment properties.
■Flood Insurance is mandated by the Federal Government if your property is located in a Flood Zone. Flood Insurance Premiums are used to assist FEMA in rebuilding areas affected by flooding (like from a hurricane). Traditionally, “acts of God” have been excluded from many insurance policies. That was what forced the Flood Maps and mandatory coverages. (I imagine there is Tornado and Earthquake Insurance Policies as well, in areas where they are more likely.)
■Title Insurance is usually split into two policies – an Owner’s Policy and a Lender’s Policy. Both basically insure the same thing- that the owner of record is the rightful owner and that the liens of record (mortgages, for example) are the ones that everyone has agreed to. The title company searches the public records and certifies the title and the liens. Often, they clear prior liens and handle the transfer of ownership from seller to buyer with the County Clerk. Additionally, they provide information about real estate taxes, judgment and bankruptcy searches, and Certificates of Occupancy and Building Permits.
■Life and Disability Insurances are something to consider when you own a home. What if the worst case scenario happens? Depending on your age and health, the cost can be worth it. There are many types of life insurance (term vs. universal life insurance, for example) that can accomplish different goals from paying off your mortgage to planning for retirement. A strong life insurance professional is as important as a strong accountant. Cheapest is rarely best. Financially, many are covered in case of death but get crushed at times of disability. Investigate the cost….it usually makes good sense.

I expect today’s piece to get you thinking about what you must have and what you might consider for insurance. Just scratching the surface. Go get the recommendation of a professional. Check out cost, sure…but don’t lose sight of the concept of protecting your assets and your family.

http://www.kcmblog.com/2011/11/03/insurance-anyone/

Few things are as devastating as losing your home. Sadly, it’s not always inevitable. In many cases the foreclosure could’ve been avoided with some outside help.

You are in a unique position to advise your clients in financial matters. If you know that clients are on the path toward foreclosure, take the time to show them how it can be avoided. First, remind them of some of the hidden difficulties that will arise if foreclosure occurs.

Finding a new home. Don’t let your clients believe that it will be better to let the foreclosure happen, because after they lose their home, they will still need to find a new place to live. All too often, the price they will need to pay in rent will be almost as high if not higher than their current mortgage payment. Remember: The owner of the property needs to make his mortgage payment, too, so he’s going to charge a rental payment that’s higher than his mortgage costs.

Deficiency judgment. It’s not uncommon that the sale of the home is insufficient to cover the remainder of the mortgage. When the property has been damaged, or market values have dropped, the owner may end up with a bill in the tens of thousands for the difference.

Despite what many people think, most lending institutions are not anxious to foreclose. It’s a last-ditch effort to recover their money and minimize their losses, and it’s an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources for help that your client should be aware of, and most lenders will be happy to hear that their clients are going to try to keep their home rather than just await a foreclosure.

Housing Counseling Agency. The US Department of Housing and Urban Development maintains a list of HUD-approved counseling agencies. Have your client call (800) 569-4287 to find the agency nearest them.

FHA-Insurance fund. FHA borrowers may qualify to have HUD make a one-time payment to bring their mortgage current. See www.hud.gov/foreclosure for more information on the requirements to qualify.

Different mortgage program. Have them talk to a loan officer about the possibility of refinancing their mortgage to a more affordable program.

Special Forbearance. Many borrowers can qualify for a new payment structure if they’ve had an increase in their cost-of-living, such as unexpected medical expenses, or a decrease in wages. This payment structure will allow the owner to repay the lender in a given time frame.

Watch for more Business Boosters to help you provide superior service to your clients!

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You are receiving this email as a result of your ongoing business relationship with Sandy Krestan. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials.

UNSUBSCRIBE. In the unlikely event you decide that you would not like to receive this information, please reply to this email with “Remove” in the subject line.

Sandy Krestan
The Krestan Team-Benchmark Home Mortgage
7025 E Greenway Pkwy Ste 250
Scottsdale, AZ 85254

© Copyright 2011. All About News, Inc.