Infignos Media -- buyersUSA Consulting
NOW PLAYING
15 Radio Streams
Click Here
Signature In-Home Care, Inc.
Advertise Here

From Banking and Financial Services - Banking / Financial Services

Brought to you by Oxford Lumber

Neighborhood service and warehouse prices since 1958. We're also proud to own and operate Roanoke Ace Home Center, Talladega Ace Home Center and Jacksonville Home Center. Oxford Lumber is located at 1400 Barry Street. Call 256-831-0540

Gratitude

Mortgage Fees Set to Rise As Consumers Will Be 'Taxed' With Paying For the Mortgage Lenders Guarantee Fee

Thu, 8 Mar 2012 19:27:32 EST

(3/8/2012 - Austin, Texas) - The annual mortgage insurance premiums are about to rise by one-tenth of a percentage point on 1st April for FHA-backed loans.  This increase in mortgage fees equals to $200 more a year in case of mortgage insurance on $200,000 FHA-backed mortgage.  The premiums will rise in another quarter point for mortgages which is greater than $625,500 affecting the borrowers in high-cost markets such as California.

What is the cause for the increase in the mortgage fees?  Because the guarantee mortgage fee is set to raise by .1% on April 1st.  The guarantee mortgage fee are fees charged by mortgage-backed securities providers, like Freddie Mac and Fannie Mae, to lenders for bundling, servicing, selling and reporting  to investors. These fees are supposed to be paid by the mortgage lenders. 

The increase in fees was part of the payroll tax reduction legislation that was passed last December. The guarantee fee is set to rise 10 basis points on April 1, but some lenders are already writing the fee into new mortgages.

'The increase in mortgage fees shows how tricky taxing big business is,' opines Phill Grove, real estate trainer, investor, and creator of the Assignment of Mortgage Payments System real estate investing system that allows real estate professionals to sell 'unsellable' houses to 'unloanable' buyers at market price.  'While consumers were sold on the benefits of the payroll tax cuts in Decemeber and told that the banks would pay for it, the reality is that the banks simply slide the fee down to the consumer.'

The chief economist for online lender Quicken Loans, Bob Walters said that the cost will be accepted by the mortgage borrowers through interest rates that are about a high by eighth of a percentage point.  According to Walters, the mortgage lenders generally factor these costs into interest rates particularly because it will take some time before they may be able to sell the loans to Fannie Mae and Freddie Mac. He also said that the mortgage lenders predict it will usually take 45 to 60 days in order to close a loan and another 15 to 30 days before delivering the loan to Fannie Mae and Freddie Mac.

'Despite the 'record low' interest rates for mortgages and the record high housing affordability indexes, there are so many other obstacles involved in obtaining a loan that many real estate buyers have lost faith in even trying to buy a house,' continues Mr. Grove, who has successfully participated in more than 1,200 real estate transactions since 2004.  'Due to the difficulties surrounding banks and mortgages, many people are seeking alternatives, such as owner financing, to the mess created by the banks.'
 
Bankers definitely understand how to make lemonade out of lemons when it comes to any type of tax increase or regulatory fee.  Unfortunately, consumers don't have that option unless they start utilizing strategies to purchasing houses that circumvent the banks, like owner financing.


Source: WebWire



From Our Blogs

Don’t Be Shy with your Doctor about Embarrassing GI Symptoms

The most uncomfortable afflictions are often the most embarrassing.

Space? Ocean Depths? Experts Predict the Future of Travel

Technology is changing everything about the way we live.

Tricks and Treats to Stay on Budget this Halloween

You don’t have to spend a pirate’s booty if you plan carefully.

How You and Your Family Can Protect Your Local Environment

Getting involved with protecting your state’s woods is easy.


Sign up for our weekly newsletter.

Our Website Sponsors

TransformationSolutions.com

Stop smoking, lose weight, and even improve your golf score. For our free consultation call 256-237.8049 or visit us on the web at transformationsolutions.com

Buyer's Edge Realty

Annie Brunson, Buyer’s Edge Realty: A long record of successfully guiding buyers and sellers through all aspects of real estate.

Oxford Carpets Coldwater

A new depth of 1st quality luxury for your family at frugal prices! Always 50% less than our local competitors! Call Oxford Carpets Coldwater at 256-835-2155

LaMar's Donuts

Our donuts are the ultimate indulgence. Visit us at our 1781 Hamric Drive E. location in Oxford. Call 256-832-4353.

TCBY Yogurt

The country's best yogurt. Softserve, hand scooped, smoothies, cakes, pies, and specialty items. There's nothing like a specialty ice cream cake for your next special occasion! Visit or Anniston location at 1903 Quintard Avenue. 256-238-8229.