More things to do # 2….
September 5- Texas Memorial Museum
September 6- Free Day of Yoga
September 7- Free Salsa Lessons at Speakeasy
September 8- Movies In The Park
September 9- Unplugged at The Grove
September 10- Austin Ghost Tour
UT Football
09/04/10 at Rice Houston, Texas 2:30 pm CT
09/11/10 vs. Wyoming Austin, Texas 6:00 pm CT
Things to do…
Can you belive that another Austin Summer is behind us and school has started and summer vacations are over? I hope that you are looking forward to the change of seasons, fall is always my favorite time of year. Here are things that are happening around town this month, and I thought a day by day take would make a fun calendar reminder.
September 1- Dr. Seuss Exhibit at Art on 5th
September 2- First Thursday
September 3- Round Rock Express Game
September 4- Cross Canadian Ragweed at the Backyard
Jumbo Loans for More Expensive Homes
If you are looking for a larger home, you most likely will need a larger mortgage. If you need to borrow more than $417,000, a jumbo or blended jumbo mortgage may be your best option. Jumbo mortgage programs can give you the extra borrowing power you need, but the costs and guidelines may differ from those that apply to standard mortgage loans.
Jumbo mortgages are often described as “non-conforming” loans. This term applies to any mortgage that does not conform to the standard underwriting guidelines set by Fannie Mae or Freddie Mac, the two government-sponsored agencies charged with providing funds to the mortgage industry. The guidelines, which must be met for a loan to be guaranteed by one of these two entities, set the limit for single-family home mortgages at $417,000 for 2006 ($625,500 in Alaska and Hawaii). This limit is adjusted annually.
Jumbo mortgages usually carry a higher interest rate than conforming loans. Because of the larger loan amount, and because the loan can’t be guaranteed by Fannie Mae or Freddie Mac, the lender absorbs a greater degree of risk. Also contributing to the lender’s risk is the fact that homes secured by jumbo mortgages may be more difficult to sell than less-expensive homes.
If the higher interest costs make jumbo mortgages unappealing, but you still need to borrow more than the conformation loan limit, you do have another option. One relatively common variation of the jumbo loan is known as a “blended jumbo” mortgage. This financing method allows you to take out a fixed-rate mortgage up to the loan limit, along with an adjustable-rate second mortgage to cover the difference. The resulting “blended” payment is often lower than what would be required for a jumbo mortgage of the same total amount.
While the lowest possible dollar amount of a jumbo loan is uniform among lenders (just a dollar more than the Fannie Mae and Freddie Mac loan limit), the highest possible amount is not as distinct. Different lenders are willing to absorb different levels of risk, and establish their own “ceiling” for jumbo mortgage. In addition to differentiating between conventional and jumbo loans, many lenders have a separate category for “super-jumbo” loans. Where the line is drawn between jumbo and super-jumbo, and how the costs and loan requirements differ, also depends upon the lender. Before you apply, ask what category your desired loan amount fits into.
UT Football 2010 Roster
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Universtiy of Texas Fall 2010 Football schedule
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@ Houston, Texas 2:30 pm CTFrom Application to close
From Application to Closing
Once you’ve submitted your mortgage application and received a decision, the steps leading up to your closing will be unfamiliar. We want you to know what to expect. Prior to closing on your new home, you’ll need an appraisal, a home inspection, home insurance and title insurance.
PreApproval
Upon application credit check, and submission of your supporting documentation, your lender will have discussed what you can qualify for and have a preliminary plan for financing. It is preliminary because you may find a home at a different price or the rates may change. Your lender will be ready to issue a Conditional Approval letter upon the location of a home on which you’d like to make an offer.
Finding A Home
At this point, you’ll go home searching based on our preliminary financing plan. Your Realtor may want basic information on the financing plan as the Purchase contract does require some of this info. Once you have a home you’ll provide the lender with a contract.
Your Option Period
Your contract will give you an Option Period to get additional information on the home and decide to continue with the purchase. This usually includes your inspections and time for the Realtors and Sellers to get you information such as the survey, restrictions, and other info.
Appraisal
Upon the completions of your Option Period and your decision to proceed with the purchase, the lender will order an appraisal from a professional appraiser to determine the value of your home. Most loan programs require an appraisal to make sure the sale of the property would provide enough funds to repay the mortgage balance. This protects the lender in case of default, and can also help you make sure you don’t overpay for the home. An appraiser will give a professional assessment of the property’s value based on a number of factors, including:
- Square footage, overall condition, special features and amenities
- Home improvements
- Property location
- A review of the sales prices of comparable properties that have sold recently in your area.
Home Inspection
A professional home inspection can help put your mind at ease by identifying any potential issues with the home. In some cases, a home inspection may be required as part of your loan approval process. A home inspector will give a professional assessment of the property’s physical condition and notify you of any existing or potential problems. At minimum, the inspection should cover all the home’s major systems and structural elements, including the foundation, electrical system, heating and cooling systems, insulation, roofing, plumbing and all exterior features.
You should make every effort to be present during the inspection, so you can see any problems first hand. Accompanying the inspector can make the inspection report easier to understand, and you may even get some valuable maintenance tips. Your Realtor can make suggestions on Inspectors.
Home Insurance
Home insurance will protect the investment you’ve made in your home. Your policy will compensate you for damage done to your home or its contents by natural hazards such as fire and wind and will protect you from liability if someone is injured on your property.
Before you close on your mortgage, you’ll be required to show proof that you have purchased home insurance. Your lender will probably require you to purchase a minimum amount of coverage, usually equal to your loan amount. You may, however, want to purchase a larger policy to make sure you’re protected from additional losses.
Title Insurance
There are two types of title insurance: one protects the lender and one protects the borrower.
Title insurance is purchase as protection from claims against your ownership of the property. Such claims may be made by undisclosed spouses, heirs of previous owners, creditors holding liens against previous owners or other parties.
Your lender will most likely require you to purchase a title policy, which will cover their interests in the property. It’s up to you to purchase a policy to protect your interest in the home. Your home mortgage consultant will be able to recommend a title insurance company who can provide additional information about the policies available in your area.
FED Changes to mortgage lending
BREAKING NEWS
Provided by IMMAAG
On August 16, 2010, the Federal Reserve Board (for reasons that are not completely clear, but possibly in a defensive move to preempt any chance for the new Director to do things his or her way) announced FIVE ACTIONS in almost 1,200 pages:
- An interim rule revising closed-end mortgage disclosures (71 pages)
- The final rule to protect borrowers from unfair practices (so much for the new bureau’s role or chance to weigh in) (113 pages) (Note – this is the rule that closed comments on 12/24/09.)
- The final rule regarding mortgage sale notification requirements (63 pages)
- A proposed rule enhancing consumer protections and disclosures (930 pages!)
- A proposed rule revising escrow requirements for JUMBO Loans (16 pages)
Check out the following links to learn more:
- Federal Reserve announces final rules to protect mortgage borrowers from unfair, abusive, or deceptive lending practices that can arise from loan originator compensation practices. There is a one page highlights document available if you click through on this one: http://www.federalreserve.gov/newsevents/press/bcreg/20100816d.htm
- Federal Reserve proposes enhanced consumer protections and disclosures for home mortgage transactions: http://www.federalreserve.gov/newsevents/press/bcreg/20100816e.htm
- Federal Reserve proposes rule to revise escrow account requirements for jumbo mortgages: http://www.federalreserve.gov/newsevents/press/bcreg/20100816a.htm
- Federal Reserve announces final rules regarding consumer notification of mortgage loan sales or transfers: http://www.federalreserve.gov/newsevents/press/bcreg/20100816c.htm
- Federal Reserve issues interim rule revising disclosure requirements for closed-end mortgages: http://www.federalreserve.gov/newsevents/press/bcreg/20100816b.htm
What is Title Insurance?
I found this and thought it might be good info.
What is title Insurance?
Title insurance is the application of insurance to hazards in real estate titles.
What is “Title”?
“Title” is the foundation of ownership of property. It means that you have a legal right to possess that property and to use it within the restrictions imposed by authorities or limitations on its use – superimposed on the basic right to possession by previous owners.
What is the difference between relying on an abstract and attorney’s opinion versus title insurance policy?
(a) An abstract is a compilation of written instruments affecting title to a property. An attorney’s opinion of ownership and state of title disclosed by the abstract. An abstract and attorney’s opinion do not disclose various defects in the title, such as fraud, forgery, defective deeds, incompetence of parties signing documents or clerical errors in the records. In fact, an abstract and attorney’s opinion may not uncover many of the title defects that can exist. Then, chance of recovery in the event of a title loss in this case depends entirely on the solvency of the attorney examining the title. The attorney’s liability is limited to errors and oversights that would not be made by a diligent attorney. The attorney is not liable for loss caused by hidden defects.
(b) A title insurance policy indemnifies the insured against monetary loss caused by defects in title not expected to in the policy.
Why should I protect the home I buy with title insurance?
Because without title insurance, you become a self-insurer. This is an inadvisable unless you are in a financial position to lose the money you have invested in your home without upsetting your financial condition in any way.
Are there different types of title insurance of title insurance policies?
There certainly are. First, there is the Owner’s Policy that the home purchaser needs for his or her protection. Then, there is the Mortgagee’s Policy, which protects only the mortgage/money lender. Most financial institutions lending mortgage money on a wide scale insist upon Mortgagee Title Policies for their protection.
If the lend is getting a title policy, why do I as an owner need one?
The lender’s policy protects the lender’s interest only and does not provide protection to the owner.
Is title insurance as important as fire insurance?
Yes because your losses without title insurance can be greater than fire losses. If a house burns, the land is still there to rebuild. If title to the property fails, you have nothing. That is why owner’s title insurance is always written to cover value of the house and lot.
How does title insurance help protect my home?
It places the assets of a corporation behind the title to your home. If attacked, the title will be defended without cost to you and if the title, or any part of it, should be defective, you will be reimbursed up to the face amount of your policy, for any financial loss incurred.
How much does the title insurance cost and how long am I protected?
For the protection provided, the cost is modes. Whie the rates are graduated in Texas, a $100,000 owner policy costs $1,023.00 or about 1% of the cost of the property. Unlike other insurance with annual premiums, title insurance premiums are paid one time and protect youas long as you and your heirs own the property.
Why won’t the seller’s title policy protect me?
Their policy only relates the title as of the date of the policy, in other words, their date of purchase of the home. Since that date, the insured could have conveyed the property or given rights to others in the property. Once the homeowner signs a Warranty Deed, the policy converts to a Warrantor’s Policy and follows the owner, not the property.
What does a Percent in rate cost you?
| What does a percent in rate cost you? | ||||||||||
| 30 Year Fixed Rate Mortgage | ||||||||||
| Mortgage Amt. | Interest Rates / Monthly Payment | |||||||||
| 5% | 6% | 7% | 8% | 9% | ||||||
| $100,000 | $536.82 | $599.55 | $665.30 | $733.76 | $804.62 | |||||
| $110,000 | $590.50 | $659.51 | $731.83 | $807.14 | $885.08 | |||||
| $120,000 | $644.19 | $719.46 | $798.36 | $880.52 | $965.55 | |||||
| $130,000 | $697.87 | $779.42 | $864.89 | $953.89 | $1,046.01 | |||||
| $140,000 | $751.55 | $839.37 | $931.42 | $1,027.27 | $1,126.47 | |||||
| $150,000 | $805.23 | $899.33 | $997.95 | $1,100.65 | $1,206.93 | |||||
| $160,000 | $858.91 | $959.28 | $1,064.48 | $1,174.02 | $1,287.40 | |||||
| $170,000 | $912.60 | $1,019.24 | $1,131.01 | $1,247.40 | $1,367.86 | |||||
| $180,000 | $966.28 | $1,079.19 | $1,197.54 | $1,320.78 | $1,448.32 | |||||
| $190,000 | $1,019.96 | $1,139.15 | $1,264.07 | $1,394.15 | $1,528.78 | |||||
| $200,000 | $1,073.64 | $1,199.10 | $1,330.60 | $1,467.53 | $1,609.25 | |||||
| $210,000 | $1,127.33 | $1,259.06 | $1,397.14 | $1,540.91 | $1,689.71 | |||||
| $220,000 | $1,181.01 | $1,319.01 | $1,463.67 | $1,614.28 | $1,770.17 | |||||
| $230,000 | $1,234.69 | $1,378.97 | $1,530.20 | $1,687.66 | $1,850.63 | |||||
| $240,000 | $1,288.37 | $1,438.92 | $1,596.73 | $1,761.03 | $1,931.09 | |||||
| $250,000 | $1,342.05 | $1,498.88 | $1,663.26 | $1,834.41 | $2,011.56 | |||||
| $300,000 | $1,610.46 | $1,798.65 | $1,995.91 | $2,201.29 | $2,413.87 | |||||
| $350,000 | $1,878.88 | $2,098.43 | $2,328.56 | $2,568.18 | $2,816.18 | |||||
| $400,000 | $2,147.29 | $2,398.20 | $2,661.21 | $2,935.06 | $3,218.49 | |||||
| $450,000 | $2,415.70 | $2,697.98 | $2,993.86 | $3,301.94 | $3,620.80 | |||||
