Category Archive Fixed Rate Mortgage

The FHA 203K Mortgage Process

 The FHA 203k is a great loan for someone making a purchase or refinancing, and these steps will provide you with a road-map to understanding the process.

1)    The Buyer works with a realtor to find the right property for them, or the owner is ready for a renovation on their existing property.

2)    Get pre-approved by lender for the price range and repair estimate.

3)    Go to contract on the house noting that it is FHA 203k financing (for a purchase).

4)    A meeting is scheduled with a HUD Consultant on site of the property to complete the work write up and the estimate of repairs.

5)   The lender orders the appraisal for the property. The appraisal must contain the before and after renovation value of the home.

6)    Closing of the property takes place and escrowing the funds for repairs and upgrades.

7)   The contractor starts work on the property and draws down funds for repairs and upgrades.

8)    Lastly, you move into your new home or settle into your new and improved home.


The FHA 203k inspection, work write-up and cost estimate are essential elements in processing the FHA 203k insured loan.  Therefore, when a consultant is used for the project it is the responsibility of the consultant to assure that the specification of repairs are properly prepared.

These steps will help guide you through the FHA 203k mortgage process and get you into the home of your dreams.

Headed for another refi boom?

Freddie Mac mortgage rates 2010-2011

Mortgage rates are falling, falling, falling.

On a wave of uncertainty about Greece and its debt; and weaker-than-expected economic data at home, conforming 30-year fixed rate mortgage rates have fallen to levels not seen since December 2, 2010.

Mortgage rates have dropped 8 weeks in a row. Not even last year’s Refi Boom produced an 8-week winning streak. This season’s streak is historic.

The 30-year fixed rate mortgage now averages 4.49% nationally, down 42 basis points, or 0.42%, since early-April. For every $100,000 borrowed, that equates to a monthly savings of $25.24.

Adjustable-rate mortgages have shed even more, giving back 50 basis points since the streak began.

Because of low rates, it’s an excellent time to buy or refinance a home relative to just a few weeks ago. Note, though, that depending on where you live, you may find your quoted interest rates to be slightly higher or lower than what Freddie Mac reports in its survey. This is because the Freddie Mac figure is a national average.

Mortgage rates and fees vary by region:

  • Northeast : 4.49 with 0.6 points
  • Southeast : 4.52 with 0.8 points
  • North Central : 4.52 with 0.6 points
  • Southeast : 4.52 with 0.6 points
  • West : 4.45 with 0.8 points

You’ll notice that, in the West Region, rates tend to be low and fees tend to be high; in the North Central Region, the opposite is true.

Is there a particular rate-and-fee setup that suits you best? The good news is that you can ask for it — no matter where you live.

If having the absolute lowest mortgage rate is more important to you than having the absolute lowest fees, ask your loan officer to structure your loan in the “West” style. Or, if low costs are more your style, ask for them.

Mortgage rates appears as if they’re headed lower but don’t forget how quickly markets can change. Once they do, mortgage rates should spike. Exploit today’s market while you still can.