How to calculate loan to value on your Wisconsin mortgage for monthly mortgage insurance.

How to calculate loan to value on your Wisconsin mortgage for monthly mortgage insurance.



Hi, I am Ron Meyer a mortgage loan consultant with GSF Mortgage.

Today I am going to be talking about mortgage insurance or pmi. If you are putting less than 20% down on a home purchase, your lender will require you to carry mortgage insurance.

A common question I get from buyers who are purchasing a home is how do I calculate the loan to value ratio to determine if I will need pmi? Can I go off of appraised value to calculate loan to value or do I need to use the purchase price? For loan to value ratios greater than 80%, you are required to carry mortgage insurance.

Let’s use the following purchase transaction example of
Purchase Price $100,000
Loan amount $90,000 putting $10,000 down
Appraised value $115,000.

In this example, your loan to value would be 90%. You would be required to pay private mortgage insurance because the loan to value is based off of purchase price and not the appraised value. On a refinance, however your loan to value is based on the appraised value

If you liked this information or found it helpful, please email it, forward it, or share it with others who might like it.

Ron Meyer
(920) 213-0428
www.gsfron.com
rmeyer@gogsf.com

How to calculate your FHA mortgage payment

How to calculate your FHA mortgage payment including taxes, home insurance, and monthly mortgage insurance.


Hi

I’m Ron Meyer and I’m a mortgage loan consultant with GSF Mortgage.

Now that you are preapproved for a mortgage and went out and found your dream home, you want to know what your monthly payment is going to be using an FHA mortgage.

We have all seen the ads: “Buy this $200,000 home and your payment is only $850.” You say to yourself, “I can afford that.” But, if you read the fine print, that is actually a principal and interest only payment and assumes you’re putting 20% down. It doesn’t factor in home insurance, real estate taxes, or mortgage insurance.

On all FHA loans, an up front mortgage insurance premium equal to 1% of loan amount is added.

Monthly mortgage insurance premiums will vary depending on the length of the loan and the amount of your downpayment.

For Example

15 yr or less loans
Less than or = to 95% ltv is 25 basis points
Greater than 95% ltv is 50 basis points

20 or 30 year loans
Less than or = to 95% ltv is 110 basis points
Greater than 95% ltv is 115 basis points.

Now, let’s calculate your true monthly payment on that $200,000 home. First, you”ll need a mortgage calculator. You can find one on my website getapprovedfast.com. Click on Mortgage 101, and then select Calculators.

Let’s say your purchase price is $200,000, you’re making a 3.5% downpayment, and your loan is a 30 year fixed rate loan with a 5% rate. Taxes are $4,200 a year (or $350/month) and your home insurance is $600, or $50 per month.

1. purchase price of $200,000
2. 3.5% downpayment
3. 30 year fixed rate at 5%
4. taxes of $4,200 or $350 per month
5. home insurance of $600 or $50 per month

• A purchase price of $200,000 minus a 3.5% downpayment gives you a $193,000 base loan amount.
• Add in 1% up front mortgage insurance by multiplying $193,000 x 101%--your total loan amount is $194,930.
• Based on a 5% rate, your principal and interest payment is $1,046.43.
• Add in monthly mortgage insurance of $183.72 based on 115 basis points
• Figure $350 for taxes, and $50 for home insurance

This makes your total payment $1,630.15 each month—much greater than the $850 described in the ad.

To calculate monthly mortgage insurance, just multiply total loan amount times 1.15 and divide by 12. That is actually a little high but it will get you close. The actual way to calculate is a little confusing for most. If anyone would like to know that exact formula, let me know.

I hope you found this information helpful. If you know of others who would like this information, please email, forward or share it with them.

Ron Meyer
(920) 213-0428
www.gsfron.com
rmeyer@gogsf.com

FHA Streamline refinance no appraisal or income docs needed

FHA Streamline refinance your Wisconsin mortgage with no appraisal or income documentation needed. We only call to verify you are employed.

Anyone with a mortgage rate in the upper 4's or higher maybe able to benefit with todays currently low rates. Even if you looked at refinancing a couple months ago it doesn't hurt to recheck now. With rates dropping again, and with the new year having to put less money into your new escrow account it might make sense to refinance now.

To see if a refinance makes sense for you, give me a call at (920) 788-9608 or email me rmeyer@gogsf.com

ARG listings no longer on 3rd party syndicators like trulia, zillow, & realtor.com

ARG Abbott Realty Group Broker and President Jim Abbott explains why ARG listings will no longer be permitted on 3rd party syndicator sites such as trulia, zillow, and realtor.com

That this was a very interesting video and a hot topic currently being debated.

Week 39 contest & open houses Jan 29th. Thanks for the memories Prince F...

Hi

I’m Ron Meyer and I’m a mortgage loan consultant with GSF Mortgage in Little Chute, WI.

Welcome to my week 39 contest. Congratulations to Prince Fielder on his 9 year 214 million dollar contract. We’ll miss you big fella.

This week guess the total points of the NFL Pro Bowl. Post your predictions in the comments below this video.

One winner whoever guesses the closest will win a $10 Cousins Subs gift card. Only 1 entry per person and all entries must be received before the start of the game.

Click here to post your prediction on facebook

Alright let’s get to this weeks open houses on Sunday January 29th.

I picked out a couple of excellent homes to see in Appleton. This past week I posted that homes sales are on the rise, inventory levels are going down and rates are ticking upwards. If you’re looking to time the bottom of the market this could be it. Don’t wait until spring and pay more.

First up is an Open house from 11:00 to 12:00 by Thomas A. Werth
at 3701 Boyd Ct
This home has 3 beds with 2 1/2 baths is 2890 sq ft with an attached 3 car garage
Listing price $259,900

Next is an Open House from 12:00 to 1:00 by Stacey Hennessey
At 478 Barbie Ct.
This home has 4 bedrooms with 3 baths with an attached 3 car garage and is 2363 sq ft.
Listing price $254,900


If you are a home seller or real estate agent and have a great open house coming up, contact me today to have your home featured in an upcoming edition.

I hope you found this information helpful. Please email subscribe to my blog on the right. If you know of others who would like this information, please email, forward or share it with them.


Have a great weekend and Happy House Hunting

Ron Meyer
(920) 213-0428
www.gsfron.com
rmeyer@gogsf.com

PMI Private Mortgage Insurance when can it be removed from your Wisconsin mortgage.

Private mortgage insurance PMI when can it be removed from your Wisconsin Mortgage.

Hi, I am Ron Meyer a mortgage loan consultant with GSF Mortgage.

Many 1st time homebuyers are required to have PMI, or Private Mortgage Insurance on their loan. Often the question arises when can PMI Private Mortgage Insurance be removed?

On a conventional loan you can request your pmi to be removed once the ratio of your loan amount to the value of your home reaches 80%. These are based on the purchase price at the time of loan or the appraised value at the time of original refinance. The lender will probably require than an appraisal be done to be certain your loan to value is at 80%. Once your loan is at 78% the pmi will automatically drop off and no new appraisal will be needed.

If you have done improvements to your home or your house value has gone up talk to a lender to see if a refinance to remove Private Mortgage Insurance is a good option for you.


If you liked this information or found it helpful, please email it, forward it, or share it with others who might like it.

Ron Meyer
(920) 213-0428
www.gsfron.com
rmeyer@gogsf.com

December home sales rise 5%

December homes sales continue on the uptrend rising 5% for the month and have risen the past 3 consecutive months.

Lawrence Yun, NAR cheif economist said "The pattern of home sales in recent months demonstrates a market in recovery. Record low mortgage interest rates, job growth and bargain home prices are giving more consumer the confidence they need ot enter the market."

According to Freddie Mac, the national average commitment rate for 30 year conventional fixed rate mortgage fell to another record low of 3.96% in December from 3.99% in November. Back in December of 2010 the rate was 4.71%.

Total housing inventory at the end of December dropped to 2.38 million or 9.2%. Inventory supply is currently at 6.2 months down from 7.2 in November.

With home sales on the rise, inventory supply shrinking and rates trending higher it's a good idea to purchase now versus waiting until spring. Give me a call today to get preapproved to purchase a home today at (920) 213-0428 or apply online at apply online

Fee increase to Impact Home Loans What exactly is the "G" fee

Fee Increase to Impact Home Loans What exactly is the “G” Fee

January 19, 2012

By Mortgage Market Guide


In December 2011, Congress reached a last-minute deal to fund the payroll tax cut extension. The payroll tax cut provides a 2% tax reduction for individuals earning up to $106,800, so the tax extension will be very helpful for many Americans who are struggling during these tough economic times. But like so many things in our tangled economy, there's a flip side. In this case, the tax cut deal has a rippling effect that will impact the mortgage world via an increase in "g-fee's."

Here's what's happening and what it means to home loan rates:

First, what exactly is the "g-fee"? The guarantee fee or "g-fee" is an amount charged by mortgage-backed securities (MBS) providers, like Freddie Mac and Fannie Mae, to help protect against credit-related losses in the overall mortgage portfolio. In other words, it acts a lot like insurance and helps lower the overall risk...which means that home loans can be offered at terrific interest rates to borrowers that have good - but not perfect - credit.

What is happening and why? To put it bluntly, the passage of the payroll tax cut extension is being funded via a mandate to Fannie Mae and Freddie Mac to increase their guarantee fees or "g-fee's" by at least 10 basis points on the rate. So rather than giving a par rate of 4.00%, for example, the par rate is now increased by at least 10 basis points, or approximately 4.10%. But since home loan rates are priced and offered in .125% increments, this will most likely impact the consumer by .125% in rate. The political logic behind passing on the cost of the payroll tax cut extension in this way is sketchy at best, and the Congressional Budget Office recently estimated that the increase will ultimately pay for about $35.7 Billion of the cost of the payroll tax extension - on the backs of homebuyers and refinancers.

Why is there confusion about the 10bps? Two reasons: First, the wording states that g-fees must be increased by at least 10 basis points...which means that's the minimum, not the maximum...so it's not impossible that g-fees could be increased by more than 10 basis points. Second, the way they described the 10bp increase is somewhat confusing, as both rates and points are described in basis points. The 10bp hit is to the rate side, not the point side...so let's break it down simply and think about it.

A good rule of thumb used to be (and sometimes still is) that in order to buy down a par rate by .125% in rate, it would generally cost about 50 basis points in points (or $500 on a $100,000 loan). So it stands to reason that buying down the rate by .10% might cost 40 basis points...so the 10bp g-fee hit translates into about 40 bps that we'd see on our rate sheet. But as we all know far too well...the amount required to cover .10% in rate will most certainly vary by the investor, the day or the hour, and let's face it...perhaps by which way the wind is blowing. That makes the hit a little unpredictable at best, which leads some people to worry about wild variations or worst-case scenarios.

What exactly is the impact of the rate increase? For example, for a $200,000 home loan, the increased g-fee (assuming an approximate rate hit of .125% in rate) would equate to $250 more per year in interest, or $7,500 more over 30 years. Someone buying or refinancing a home can certainly choose to buy down the cost with cash up front - but most folks will not do this.

Who will this impact? The change will impact all new borrowers of Fannie Mae and Freddie Mac loans. The bill will also impact Federal Housing Administration (FHA) loans by increasing the annual mortgage insurance premium that borrowers pay by one-tenth of a percent.

When will it start? Officially, the increase to guarantee fees will begin on April 1, 2012. However, the increase is already starting to be seen in rate sheets right now, since home loans being originated now will likely not be closed, pooled and securitized until April... and therefore will need the increased g-fee priced in earlier.

How long will this be in effect? The increase will be effective through October 1, 2021.

The bottom line is that like it or not, the g-fees are going up...and this will impact homebuyers looking to obtain a home loan through Fannie Mae, Freddie Mac and FHA.

For those of you who have the Mortgage Market Guide Weekly newsletter - a referral partner/consumer facing version of this piece will be in this weekend's issue.

FHA free training webinar

Below is information regarding FHA Training that is coming up later this month. For those of you not as familiar with the FHA product or need a refresher it might be a good idea to attend this.

FHA Training and Other Events:

January 26, 2012 – Webinar: FHA Basic Credit/Liabilities Underwriting. This FREE FHA Webinar at 9:00am Mountain Time is intended for mortgage professionals, including loan officers, underwriters and processors, new to FHA or who wish to refresh their knowledge of basic FHA Credit and Liability Underwriting Policies. Topics will include overall credit history and liability analysis, short sales and non-traditional credit guidelines. Registration required with no fee:

More info at: visualwebcaster

Questions? E-mail us at denverhoc-pudtraining@hud.gov

Week 38 contest and open houses January 22

Hi

Post your predictions here Week 38 Contest
I’m Ron Meyer and I’m a mortgage loan consultant with GSF Mortgage in Little Chute, WI.

Welcome to my week 38 contest. This week guess the total points of Kaukauna 4th grade elite team vs East Troy in the Waukesha South Tournament game on Sunday at 2:25. Post your predictions in the comments below this video

One winner whoever guesses the closest will win a $10 Dairy Queen gift card. Only 1 entry per person and all entries must be received before noon on Sunday.

Alright let’s get to this weeks open houses on Sunday January 22nd.

I picked out a couple of excellent homes to see in Neenah

First up is an Open house from 12:0 to 1:00 by Tami Sankey
At 1365 Harvest Moon Dr
This home has 3 bedrooms with 2 baths with an attached 3 car garage and is 1867 sq ft.
Listing price $209,900

Next is an Open House from 12:00 to 1:00 by Mike Karisny
at 1817 Hedgeview St.
This home has 3 beds with 2 1/2 baths is 1573 sq ft with an attached 3 car garage
Listing price $189,900


If you are a home seller or real estate agent and have a great open house coming up, contact me today to have your home featured in an upcoming edition.

I hope you found this information helpful. If you know of others who would like this information, please email, forward or share it with them.


Have a great weekend and Happy House Hunting

SOPA and PIPA what is that?

I must not pay much attention to things around me. I turn on my computer today and goto google. There is a big black bar across google and I click on it to figure out what's up with that. Wikipedia is totally blacked out for today.

Everyone should contact their representatives and voice your concerns.

Contact your representative

When I clicked on google tab more about SOPA & PIPA here is what it says.

More about SOPA and PIPA

Members of Congress are trying to do the right thing by going after pirates and counterfeiters but SOPA and PIPA are the wrong way to do it.

1. SOPA and PIPA would censor the Web

The U.S. government could order the blocking of sites using methods similar to those employed by China. Among other things, search engines could be forced to delete entire websites from their search results. That’s why 41 human rights organizations and 110 prominent law professors have expressed grave concerns about the bills.

2. SOPA and PIPA would be job-killers because they would create a new era of uncertainty for American business
Law-abiding U.S. internet companies would have to monitor everything users link to or upload or face the risk of time-consuming litigation. That’s why AOL, EBay, Facebook, Google, LinkedIn, Mozilla, Twitter, Yahoo and Zynga wrote a letter to Congress saying these bills “pose a serious risk to our industry’s continued track record of innovation and job-creation.” It’s also why 55 of America’s most successful venture capitalists expressed concern that PIPA “would stifle investment in Internet services, throttle innovation, and hurt American competitiveness”. More than 204 entrepreneurs told Congress that PIPA and SOPA would “hurt economic growth and chill innovation”.
3. SOPA and PIPA wouldn’t stop piracy
To make matters worse, SOPA and PIPA won’t even work. The censorship regulations written into these bills won’t shut down pirate sites. These sites will just change their addresses and continue their criminal activities, while law-abiding companies will suffer high penalties for breaches they can’t possibly control.
There are effective ways to combat foreign “rogue” websites dedicated to copyright infringement and trademark counterfeiting, while preserving the innovation and dynamism that have made the Internet such an important driver of American economic growth and job creation. Congress should consider alternatives like the OPEN Act, which takes targeted and focused steps to cut off the money supply from foreign pirate sites without making US companies censor the Web.

Home inspection when purchasing a home.

ORDERING YOUR WISCONSIN HOME INSPECTION

Your Wisconsin offer to purchase a home should always be contingent on a satisfactory home inspection. Even if a home inspection is not required by the lender, it is always advisable to have one done. The standard Purchase & Sales Agreement also called the P&S agreement (P&S) provides that if the inspection uncovers any "significant" defects that were not previously disclosed to you, you may cancel the agreement. This may also give you an opportunity to negotiate new terms with the seller. If major repairs are needed, ask the seller to fix the problem to your satisfaction. Keep in mind that any such negotiated settlement must be in writing and made part of the P& S. A good home inspection will identify any issues or problems with the property and can provide you with helpful information about future maintenance needs.

Reliable home inspectors are usually those who practice the profession as their full-time occupation and belong to a professional organization. Consider hiring an inspector who is a licensed engineer, as engineers are legally qualified to render opinions on home inspection issues.

Ask the inspector for references, and don’t be afraid to call the references to verify that they are legitimate, satisfied customers. Here are some other things to ask your home inspector.

• Do you carry errors and omissions insurance?

• Will you provide me with a detailed written report or a checklist style report?

• Will the report provide an overall opinion of the property as compared to others of similar age and construction type? • Is an inspection for wood-destroying insects included as part of your standard inspection?

• Will you inspect the roof from the ground or from the roof itself?

• Does the inspection include an evaluation of the condition of the chimneys?

Will you prioritize needed repairs and create a maintenance and repair plan to help you take care of your home? Most homes will need some repairs. If your inspector finds that an overwhelming number of repairs are needed, or if the repairs are major items like wiring or a furnace, you might want to negotiate these items with the seller or look for a home that requires fewer repairs.

A good home inspection is a critical part of the home buying experience. Find a home inspector early in the process and develop a relationship with him or her before you need an actual inspection.


If you liked this information or found it helpful, please email it, forward it, or share it with others who might like it.

Appleton Oshkosh Green Bay Wisconsin mortgage interest rates

Mortgage interest rates just updated for Appleton Oshkosh Green Bay and all of Wiscosin. 30 year fixed rates remain at 3.875%. Click on the Todays Rates tab for all current mortgage interest rates. On a refinance you have the option to roll all your closing costs into the new mortgage loan. You will also be able to skip 1 months mortgage payment and get your entire escrow amount back. We also have a no closing cost option available. Contact me today at (920) 213-0428 or email rmeyer@gogsf.com to see which mortgage refinance option is best for you. If you are looking to purchase a home we have several low downpayment and no downpayment options available.

Peeling hard boiled eggs made easy

I eat quite a few hard boiled eggs every week and it's always a challenge trying to peel them. Check out this video to peel an egg super easy. I haven't tried it yet, but will soon. Let me know if it works for you.

Week 37 Contest to win a $10 Cousins Sub. Packers vs Giants

Hi

I’m Ron Meyer and I’m a mortgage loan consultant with GSF Mortgage in Little Chute, WI.

Welcome to my week 37 contest. This week guess the total points of the Packers Giants game. Post your predictions in the comments below this video

One winner whoever guesses the closest will win a $10 Cousins gift card. Only 1 entry per person and all entries must be received before the start of the game.

Alright let’s get to this weeks open houses on Sunday January 15th.

I picked out a couple of excellent homes to see in Menasha

First up is an Open house from 12:30 to 1:30
At 837 Roosevelt St
This home has 3 bedrooms with 2 baths with a dettached 2 car garage and is 1547 sq ft.
Listing price $106,900

Next is an Open House in Greenville from 12:30 to 1:30
at 751 Manitowoc St.
This home has 3 beds with 2 1/2 baths is 1557 sq ft with an attached 1 1/2 car garage
Listing price $105,900


If you are a home seller or real estate agent and have a great open house coming up, contact me today to have your home featured in an upcoming edition.

I hope you found this information helpful. If you know of others who would like this information, please email, forward or share it with them.


Have a great weekend and Happy House Hunting

Earnest Money What it is and how to pay it.

When putting down earnest money make sure you are paying via personal check or bank check with the proper documentation. Never pay using cash.

Earnest money is a deposit towards the purchase of Wisconsin real estate from a buyer to show the seller he or she is serious about wanting to purchase the home.

When paying earnest money do not pay with cash. Your Wisconsin mortgage lender will need to verify the earnest money. The best way is to pay via personal check. Your lender will need a copy of the front of the check of the back once it clears your bank. In addition some Wisconsin mortgage lenders may require a statement from your account from the date the check cleared going back 30 or 60 days. You can also pay via money order or bank check, however, you will need to provide a 30 or 60 day transaction statement showing the money came out of your account. In addition any deposits listed on that account will need to be sourced and explained. Deposits from payroll, taxes, bill of sale items etc are acceptable. Lenders do not want to see cash deposits.

If you pay via cash or your lender is unable to verify the earnest money came from you as earned income or seasoned money they will not be allowed to use it as a credit on the HUD Settlement statement and an amendment to the offer will need to be drawn up removing earnest money from the offer to purchase.

If you liked this information or found it helpful, please email it, forward it, or share it with others who might like it.

Magic pill helped me lose over 100 pounds NOT!

Every year the #1 New Years Resolution is weight loss. If you're overwhelmed and unsure of what to do or ready to give up I hope this helps motivate you. Here's how I lost over 100 pounds by just taking a pill each day and follow the directions on the bottle. Hoping to hit my goal of down 150 by the 4th of July. Stay focused!

Processing and underwriting of your Wisconsin mortgage loan and what it ...

Hi, I am Ron Meyer a mortgage loan consultant with GSF Mortgage.

Today I will be discussing the processing and underwriting of your Wisconsin loan and what it involves.

Once you have an accepted offer to purchase, call your lender to schedule a time to come in to sign the loan application as soon as possible. Be sure to bring along all documents they ask for at that time. Some of the most common are check stubs, w2’s, taxes, asset and statements.
Once you sign your loan application your lender will begin working on your file.

Prior to being sent to underwriting, your loan officer or their processor will do some of the following:
1. order an appraisal
2. give the title company all the lender’s & buyer’s information
3. order verification of employment
4. order flood certification
5. order tax transcripts
6. verify assets for downpayment & reserves if needed.

Once all of this information is received except, usually, the title and appraisal your file will be sent to an underwriter to review along with your loan application, offer to purchase, & credit report. Depending on your lender, this review process will take anywhere from a couple of days to a week or more. Once the underwriter reviews the file, he or she will issue a list of conditions or “stips”. This is additional information or documentation that is needed prior to issuing a loan commitment. All of the stips must be gathered and submitted at once. Underwriters don’t want bits and pieces at a time. Many times when additional information is sent to the underwriter it creates more stips so it is very important to get whatever your lender requires as soon as possible. Once your lender receives the conditions they will review it. Depending on your lender this may take a couple days or even a week or more. Once they review and everything looks good at this point, a loan commitment is issued and your loan is ready for closing. To avoid undue stress, lenders and title companies would like to see the loan commitment a minimum of 2 business days prior to closing. This allows ample time for the funding & the Title Company to prepare the documents for closing.

If you liked this information or found it helpful, please email it, forward it, or share it with others who might like it.