FHA Hikes Fees on Mortgages

Abridged (& highlighted) from the "Daily Real Estate News" | Tuesday, February 28, 2012  

"Home buyers with mortgages backed by the Federal Housing Administration will soon see a rise in fees, the agency announced Monday.   The agency is raising its fees in an effort to try to recoup some of its depleted reserves, which suffered from the rising number of home owners who defaulted on their mortgages. .... The agency also says it’s raising fees to try to encourage the return of more private capital to the market. .......   Starting April 1st.  ..... For example, a borrower with a 3.5 percent down payment with a mortgage of $193,000 can expect to pay an upfront mortgage premium alone of $3,377, compared to the prior $1,930. That can be rolled into the mortgage."  ((Our 'Side Note': if a borrower rolls this in to the mortgage, they will be paying it, over the loan, etc.))

For the FULL article see:>>> FHA Hikes Fees on Mortgages | Realtor Magazine

"Click" here to read Texas' >>   LAWS in Texas: "Information About Broker Services"     Oh, and before looking at homes (on line)...    Please consider:  Do you really Save, Time & Money  by  looking up available homes online?  And do you know, the "truth" about the so-called "helpful" web sites?  Well many are often FILLED with Ads, and Out-of-Date info!   Yes many have postings that have already been SOLD (or rented)!   Some are off the market for up to 3 WEEKS!  So when one calls for info, they are; 1) disappointed, 2) now a potential "lead" for an agent!  Then, we have found that some sites have "Xstimates" of value that are often way off (therefore useless.)   Also coupled with this is the fact that: Texas is a "NON-Disclosure" state!  This means that the sale price is NOT (generally) publicly "posted!"   Well, what can you do?  Hire a professional to help get the most valid data on SOLDs, etc.  The proffessional could be either, an Appraiser, or a REALTOR®!   Sellers have agents working for them, so WHO is on your side?   By Texas Law, they can work for YOU!    And when you are buying, your agent can be fully paid by the Seller!   Yes, sellers will PAY agents, just to bring them a buyer!

Also have YOUR Agent, do a "Comparative Market Analysis" (CMA) ... before you buy!

Want the "BIG Picture?"  Here is a Market Analysis for Texas for 2012 (Click Here)!    1) This is a large file,  with tons of info!  and 2);  NoteThat: Texas is NOT like the rest of the USA, and Austin is NOT like most other areas of Texas...   Texas is doing well, and Austin is doing VERY well!!!

 http://www.window.state.tx.us/news2011/110830-homestead.html   (Posted August 30, 2011.)

New Law Takes Effect for Property Tax

Homestead Exemption Applications

(AUSTIN) — Under a law passed by the Texas Legislature homeowners who apply for a new property tax homestead exemption beginning Sept. 1 must provide proof to the county appraisal district that they live in the house they claim as their principal residence.

House Bill 252 requires a copy of the homeowner’s Texas driver’s license or state identification card and the homeowner’s vehicle registration receipt be sent with the homestead exemption application. If the homeowner does not own a vehicle they can send a current utility bill showing name and address, along with an affidavit provided in the application indicating non-ownership of a vehicle.

The address on the documents must match the address for which the homestead exemption is requested.

The new requirement does not apply to homeowners who already have homestead exemptions. It affects only new applications for exemptions sent to appraisal districts.

“As Comptroller, we implement laws passed by the legislature” said Texas Comptroller Susan Combs. “The homestead exemption is intended to help relieve the tax burden of Texas full-time residents. This new legislation ensures that the system is working fairly and legally.”

The new law affects new applications for the general homestead exemption available to every homeowner as well as the over-65 exemption, the disability exemption, the disabled veterans exemption, the extended exemption for a homeowner’s surviving spouse and the manufactured (mobile) home exemption.

In addition to proof of residency, beginning Sept. 1, homeowners applying for a homestead exemption on a manufactured (mobile) home must also provide proof of purchase of the home and a statement of ownership and location issued by the Texas Department of Housing and Community Affairs.

The homestead exemption application form for property owners and county appraisal districts is available online at: http://www.window.state.tx.us/taxinfo/taxforms/50-114.pdf (PDF, 264.5K).

A podcast is also available at: http://www.window.state.tx.us/newsinfo/podcast/.

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Besides "Location" being an important factor, it's very wise to avoid being "house poor!"  Try to buy the right sized home!   Also consider that one has to heat and cool, and maintain a home.  A larger home may mean more money spent on utilities, and taxes!   Taxes are usually higher on larger sized properties.  Then ask yourself, do taxes ever decrease?  Not usually!   Plus: pay careful attention to the "tax rate!"  This is the dollars / hundred dolars, of valuation.  It is what one pays every year....

 - Buy the "right" size home! -

Summary: "Buy the least expensive home, in the most expensive neighboorhood, that one can afford!"   -   The smaller home's value,  tends to be"pulled upward" by larger nearby home values!  -

A rare "Un Solicited Vendor" recommendation for veterans: a Professional (Expert) that can really help with VA LOANS... ( He's an ex Marine!)

Chad Bowman:  www.chadbowman.com   (512) 646-0800 (M-F,  9 to 5)

We attended one of Chad's seminars.  Chad was awesome!   He covered a wide range of topics regarding VA Loans!  (Again, we derive NO compensation from vendor "leads!"  These are only provided  as a service to the public.  And if there is ever an "unresolvable" issue with a vendor, we want to hear about it!)

 Click image to enlarge
Cost of Commuting Infographic
Via: Streamline Refinance

The following article (Regarding "Junk Loans,") was written way Before the "Mortgage Bust."  HOWEVER, it was true then, and will more than likely be always be true!  If you try to surf the web to seek a "miracle" loan, it will likely result in a "mire" NOT a miracle...

Regarding "Junk Loans," Here is a Washington Times "oldie" but goodie article 2006

The promise of easy money comes in an official-looking envelope marked, "Important Financial Information Enclosed."  Need $2.5 million at 1 percent to 2 percent to buy or refinance a home?  No problem.
Borrowers put no money down and pay just interest. A good credit rating is not a requirement. Bankruptcy judgments, debt charge-offs or tax liens don't matter, and "all difficult credit scenarios are okay," the lender says.
The home-financing offers come from an army of mortgage brokers estimated at 250,000 nationwide, many operating outside the reach of banking regulators.
They have become the principal source of home financing in the United States.
In years past, banks and savings and loans provided most mortgages, but their share of the $2.8 trillion market dwindled to less than half in recent years, according to Harvard University's Joint Center for Housing Studies.
As the role of banks declined, the share of unconventional mortgages with easy and risky lending terms has exploded -- and now account for more than $650 billion last year up from $56 billion in 2001, according to the Federal Reserve. Most of that growth occurred since 2003, when the total was $118 billion. To see the
 Full Article Click here:  Too-Good-To-Be-True Offers Leave Borrowers in a Bind

From TAR Legal Hot Line Feb 16, 2012:

Legal Q&A: Can you leave Paragraph 7D blank?
My client won’t accept the property “as is.” He wants to wait until after the inspection to list specific repairs that he wants the seller to fix. Can I leave both boxes in Paragraph 7D of the One to Four Family Residential Contract (Resale) blank, or can I check Paragraph 7D2 and write in “repairs to be listed following inspections”?

Neither option is permissible. Leaving both boxes blank in Paragraph 7D or altering the contract terms by adding language that does not enumerate specific repairs in Paragraph 7D2 could be considered to be acting negligently or incompetently if a complaint were to be filed in connection with the transaction. The buyer should only choose Paragraph 7D2 if there are specific repairs known at the time of the contract that he wants the seller to pay for. Otherwise, the buyer should check Paragraph 7D1. Most buyers in your client’s situation will also elect to pay an option fee pursuant to Paragraph 23 in exchange for the right to terminate for any reason within a negotiated number of days. During this option period, an inspection can be performed and if specific repairs are identified, the parties can negotiate to amend the contract to address these items, or the buyer can terminate the contract.