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.

Conforming 30 Year Fixed
30 day lock rate 0 points: 5.000%
30 day lock with 1 point: 5.875%

Conforming 15 Year Fixed
30 day lock rate 0 points: 5.250%
30 day lock with 1 point: 4.625%

Conforming 20 Year Fixed
30 day lock rate 0 points: 5.375%
30 day lock with 1 point: 4.625%

FHA 30 Year Fixed
30 day lock rate 0 points: 5.500%
30 day lock with 1 point: 5.250%

FHA 15 Year Fixed
30 day lock rate 0 points: 4.500%
30 day lock with 1 point: 4.500%

*rates effective 2/03/09 for 30 day lock.  Credit score and loan to value will effect rate
**rates may change at any time with out notice – rates quoted are for best credit score customers

Provided by:
Jeff Teplitz
National City Mortgage
75 Talcott Road Suite 70
Williston Vermont 05495
(802) 879 4424 ext 234

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.

3. The new up front MIP costs will roll back to the old way for the next year. For those not aware, FHA had introduced a tiered mortgage insurance premium table costing the lowest down payment borrowers a bit more, but lowering costs for larger down payments. There may be a provision allowing HUD to increase the up front MIP to as much as 3% which would not be a positive thing for the homeowner.

4. Condominium project approvals should be significantly streamlined. Not exactly sure what that really means, but it’s a cumbersome process now and any relief is welcome.

National City Mortgage is currently the 3rd largest originator of FHA mortgages in the country. We know FHA and we close FHA the right way. FHA seems to be the buzz word and every lender and broker are looking for ways to be able to write the FHA mortgage. It’s a different mortgage and there’s a huge difference between lenders that know how to write them and have a proven track record, and those that want the product of the day. Don’t take unnecessary risks and look to a leader in FHA and all Government lending.

We still have three 100% financing options in VA, Rural Housing, and FHA’s down payment assistance. We have a dedicated condominium department that understands the rules and guidelines of Fannie & Freddie and also allows borrowers to close on units in new projects that don’t meet the new presale requirements and project definitions.

Jeff Teplitz
Mortgage Consultant
National City Mortgage,
75 Talcott Road, Suite 70
Williston, Vermont 05495
(802) 879- 4424 ext 234 phone
(802) 879 – 9324 fax
jeff.teplitz@ncmc.com
www.nationalcitymortgage.com/jeffteplitz