October 28, 2011
- Think Big Work Small had an interesting presentation on FHA streamline refi’s. Previously, the monthly MI was .55% and the financed MI was 2.15%. Now, the monthly MI is 1l15% and the financed is 1%. The monthly MI affects the payment drastically. Take an existing loan of $250,000 at a rate of 5%: the principal is $1,419.47 and the MI is $114.58 for a total of $1,534.05. A refi of that $250,000 loan at 4% gives the following: the principal is $1,266.71 and the MI is $239.58 for a total of $1,506.29. That gives a savings of only $27.76 a month, or 1.9% . The debt benefit clause mandates a savings of at least 5%, so this wouldn’t qualify. Think Big Work Small says the fix is simple. Instead of taxing the borrower an additional $125/month or $1,500/year, allow the streamlined refi’s using their original MI factor. Makes too much sense for them to do it.
- According to FoxNews.com, two Senators are introducing a bipartisan bill that would give residence visas to any foreigner making a cash investment of at least $500,000 on residential real-estate – a single family home, condo or townhouse in the U.S. Applicants can spend the entire amount on one house, or spend as little as $250,000 on a residence and invest the rest in other residential real estate which can be rented out.
- Inman News reports on a Refin study where they analyzed 1.2 million listings in 16 markets nationwide and found that Friday is the best day to list your house.
- Homes listed on Friday were 12% more likely to sell within 90 days.
- Homes listed on Thursday or Friday sold slightly closer to list price 94.4% compared with 93.9% when listed on a Sunday or Monday.
- BUYER TYPES AS SHOWN IN CC&IMLS:
Single Family – last 1291 properties sold: Condos – last 259 sold
First time buyer 187 18
Second home 574 119
Retirement 65 40
International 6 1
Other 459 81