In this week’s DMR PodCast talks about the relationship between The Fed Funds Rate and Mortgage Rates.

The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.

The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between the Fed Funds Rate and everyday mortgage rates in Little Rock.

Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Recently, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage was 4.625 percent.

For additional blog post on this topic, read:
The Fed Cuts Rates, How Does This Affect Mortgage Rates?  
How Do Mortgage Rates Move When the Fed Lowers Rates  
 The Fed Funds Rate Falls, Mortgage Rates May Not.  
As The Fed Funds Rate Falls, Mortage Rates Rise

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

This week’s DMR Podcast is about the FHA loan program and the upcoming changes on 04/18/2010 (read below) Click on the play button above to learn more.

After this week ends, the FHA is raising mortgage insurance premiums on its new Little Rock borrowers. It’s the FHA’s third such increase in the last 12 months.

Beginning with FHA Case Numbers assigned April 18, 2011, mortgage insurance premiums will be higher by 25 basis points per year, or 0.25%.

Against a $200,000 loan size, the MIP increase adds $500 to an FHA-insured borrower’s annual cost of homeownership. All new FHA loans are subject to the increase — purchases and refinances.

Existing FHA-insured homeowners across Arkansas are unaffected. Premiums do not rise for loans already made.

The FHA is increasing its mortgage insurance rates because, as a group, the FHA is insuring a much larger percentage of the U.S. housing market. 

In 2006, the FHA held a 4 percent market share. By 2010, that share ballooned to 19 percent and, today, it’s estimated to be even higher.

In its official statement, the FHA says that the quarter-point MIP bump will “significantly strengthen” its reserves which are depleted because of delinquencies and defaults. By law, the FHA’s capital reserves must meet certain levels. 

Therefore, to meet these requirements, the FHA is rolling out its new mortgage insurance premium schedule:

• 15-year loan term, loan-to-value > 90% : 0.50% MIP per year
• 15-year loan term, loan-to-value <= 90% : 0.25% MIP per year
• 30-year loan term, loan-to-value > 95% : 1.15% MIP per year
• 30-year loan term, loan-to-value <= 95% : 1.10% MIP per year

In order to calculate what your FHA monthly mortgage insurance premium would be, multiply your beginning loan size by your insurance premium in the chart above, then divide by 12. 

The FHA also charges a 1 percent, up-front mortgage insurance premium at closing. That figure remains unchanged.

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

In this week’s DMR PodCast talks about the relationship between The Fed Funds Rate and Mortgage Rates.

The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.

The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between the Fed Funds Rate and everyday mortgage rates in Little Rock.

Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Recently, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage was 4.625 percent.

For additional blog post on this topic, read:
The Fed Cuts Rates, How Does This Affect Mortgage Rates?  
How Do Mortgage Rates Move When the Fed Lowers Rates  
 The Fed Funds Rate Falls, Mortgage Rates May Not.  
As The Fed Funds Rate Falls, Mortage Rates Rise

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

In this week’s DMR PodCast talks about the relationship between The Fed Funds Rate and Mortgage Rates.

The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.

The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between the Fed Funds Rate and everyday mortgage rates in Little Rock.

Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Recently, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage was 4.625 percent.

For additional blog post on this topic, read:
The Fed Cuts Rates, How Does This Affect Mortgage Rates?  
How Do Mortgage Rates Move When the Fed Lowers Rates  
 The Fed Funds Rate Falls, Mortgage Rates May Not.  
As The Fed Funds Rate Falls, Mortage Rates Rise

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

In this week’s DMR PodCast talks about the relationship between The Fed Funds Rate and Mortgage Rates.

The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.

The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between the Fed Funds Rate and everyday mortgage rates in Little Rock.

Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Recently, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage was 4.625 percent.

For additional blog post on this topic, read:
The Fed Cuts Rates, How Does This Affect Mortgage Rates?  
How Do Mortgage Rates Move When the Fed Lowers Rates  
 The Fed Funds Rate Falls, Mortgage Rates May Not.  
As The Fed Funds Rate Falls, Mortage Rates Rise

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

Despite tougher mortgage guidelines and better loan disclosures for consumers, mortgage fraud is on the rise, according to the FBI.

Fraud has many varieties and it’s estimated cost to the nation is between $4-6 billion annually.  Today, common mortgage fraud scams target homeowners behind in their mortgage payments and/or facing foreclosure. And, despite the hordes of legitimate organizations that dedicate themselves to helping consumers, mortgage fraudsters proliferate.

In this 3-minute piece from NBC’s The Today Show, you’ll learn to spot common frauds, and to avoid them.

Some of the frauds highlighted include:

1. The Rent-to-Buy arrangement
2. The Bait-and-Switch
3. The “Phantom fees”

With respect to mortgage paperwork, it’s always wise to read what you’re signing, and to take time to understand what it means. If you’re uncomfortable reading mortgage documents, ask for an attorney’s help. And don’t worry if you don’t have the budget — many states offer free or discounted help via advocacy groups.

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

In this week’s DMR PodCast talks about the relationship between The Fed Funds Rate and Mortgage Rates.

The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.

The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between the Fed Funds Rate and everyday mortgage rates in Little Rock.

Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Recently, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage was 4.625 percent.

For additional blog post on this topic, read:
The Fed Cuts Rates, How Does This Affect Mortgage Rates?  
How Do Mortgage Rates Move When the Fed Lowers Rates  
 The Fed Funds Rate Falls, Mortgage Rates May Not.  
As The Fed Funds Rate Falls, Mortage Rates Rise

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

In this week’s DMR PodCast talks about the relationship between The Fed Funds Rate and Mortgage Rates.

The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.

The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between the Fed Funds Rate and everyday mortgage rates in Little Rock.

Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Recently, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage was 4.625 percent.

For additional blog post on this topic, read:
The Fed Cuts Rates, How Does This Affect Mortgage Rates?  
How Do Mortgage Rates Move When the Fed Lowers Rates  
 The Fed Funds Rate Falls, Mortgage Rates May Not.  
As The Fed Funds Rate Falls, Mortage Rates Rise

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

Because of strife in Greece, Spain and North Korea, conforming mortgage rates are back to all-time lows. They’re at levels not seen in 50 years.  For homeowners that missed the Refi Boom of November 2009, it’s a second chance.

In this well-presented, 3-minute video from NBC’s The Today Show, you’ll get tips getting low rates and choosing the best time to lock in.

Some of the topics covered include:

• Why were the experts wrong about rates moving higher this summer?
• How much money can you save with a 1 point drop in your interest rate?
• Should you buy a bigger home now that rates have fallen?

The advice in the piece is matter-of-fact and centered.  There is no cheerleading and the message is honest. Mortgage rates are low and they likely won’t stay that way.  If you’ve been thinking about a refinance, talk to your loan officer as soon as possible.

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com

More than 60 percent of U.S. homes are “over-assessed”, says an industry trade group. Homeowners in North Little Rock pay more in property taxes than they otherwise should have to.  You might be one of them.

Have you considered fighting your real estate tax bill?

In this 4-minute piece from The Today Show, you’ll learn:

• When to file your tax bill dispute for the best chances of winning
• How to pull your “property card” and check for tax bill-raising errors
• What to do if the taxing authority turns down your request

Most importantly, you’ll learn that don’t need to hire an attorney to fight your tax bill.  You just need to be prepared.  Do your research and make your case. It’s estimated that nearly half of all contesting homeowners are successful.

David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-588-7670. Also be sure to visit www.DavidLukas.com