Check out the latest interest rates I received from Jeff Teplitz of National City Mortgage in Williston, VT. FHA rates are slightly stronger than the conforming 30 year loan.

Paying points may be back in style. At this time the difference between the 30 year, no point loan and the 30 year 1 point is .875%.  The net savings is $54.72 per $100,000 of loan amount per month.

It will only take 18 months to realize the savings of paying the 1 point.  Well worth it to get a 5.00% interest rate.

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I receive newsletters from Jeff Teplitz, a Mortgage Consultant for National City Mortgage in Burlington VT. I found this one to be of particular interest, so I thought I would pass it on. If you are looking for more information, Jeff’s contact information is below.

FHA Changes:

The following changes look like they will take effect with the passing of the FHA bill in Congress.
1. Minimum Investment will increase from 3% to 3.5% with the current maximum loan amount calculations being simplified. This money does not have to come from the borrowers own saved funds. It can still be a gift.

2. The down payment assistance program which currently allows the seller to donate money to a non profit which in turn gifts the money to the purchaser in essence allowing for no money to come from the borrower will be eliminated as of October 1. Loans will have to be approved by September 30th. There’s still time to utilize this program so get motivated sellers within the $317k sales range to take advantage of it. (more…)