May 2012

FHA Streamline Refinance – New Program Will Help Some Chicago Area Home Owners Save Money

Starting in June, FHA will begin a new program that will help some home owners with FHA mortgages save a lot of money, but many other wise qualified homeowners won’t be able to take advantage of this new program. The new FHA program will allow borrowers who currently have an FHA mortgage to refinance with today’s record low rates, and keep their mortgage insurance at the same rate they started with even though the FHA mortgage insurance premium now is much higher. The catch is, this program only applies to those borrowers who took on the mortgage (either from a purchase or a refinance) before June 1st 2009. This means that if you bought your home or refinanced with an FHA mortgage in the last 3 years, you are out of luck, at least for now. With the new FHA streamline refinance the Upfront mortgage insurance is reduced to .01%…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 04/09/2012

Feeling frustrated because you haven’t heard enough about Greece lately? For a good portion of the last year, the financial news seemed to talk about nothing but Greece. Band aids have been applied, and when the band aid didn’t stop the bleeding, the financial equivalent for duct tape was generously wrapped around it, but it is looking like that will not be enough, and Greece is back in the new in a big way again. Last week Greece had their elections, and in a reaction to the severe austerity programs they have taken on (in order to show some signs of wanting to pay down their debt so they can stay in the European Union) minority parties on both the far right and far left fringes took large percentages of the vote. In a parliamentary system, if no one party has enough votes to govern on their own, they have…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 05/04/2012

It looks like mortgage rates are inching down again, as the monthly jobs report came in lower than expected. The monthly jobs report is without fail the most watched economic report in the financial markets. If employment is rising, this is an indication that the economy as a whole is strengthening, and an increase in jobs means increasing optimism, and spending and becomes a virtuous circle. Over the last six months, there have been signs that not only has the worst of the downturn passed, but that we were starting to build a slow, but steady recovery. So far this year the economy has gained over 800,000 new jobs, much better than where we were at this time last year. But last month’s report was less than expected, and the numbers this month also disappointed. Expectations were for an increase of about 178,000 new jobs, but the real number (for…

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