Friday Facts 10-28-11


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, 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.



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



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