When Can I Stop Paying FHA Mortgage Insurance?
Posted in Shane's Blogs
When Can I Stop Paying FHA Mortgage Insurance?
There are 2 ways to drop your FHA mortgage insurance on your home:
- Refinance to another mortgage without mortgage insurance
- Automatic termination of mortgage insurance once you have at least 78% equity in the home
The surest way to get rid of your mortgage insurance is to refinance to another loan that does not have mortgage insurance. That may not be the most economical method (due to cost of restructure), but is the surest. Often borrowers have a Conventional loan that has monthly mortgage insurance can be eliminated if they refinance to an FHA loan for 15 years. (Mortgage insurance is not required for a15YR FHA mortgage)
The second way to drop mortgage insurance is by automatic termination of mortgage insurance. Once you have at least 78% equity in the home, lenders are required to cancel the mortgage insurance, per the Homeowner Protection Act of 1998. But how is this calculated?
For automatic termination of the mortgage insurance, the current amount owed is compared to the original value of the property, and when that ratio is 78% or less, the lender must remove mortgage insurance.
Unfortunately, this does not take into account any of the property’s appreciation throughout the years, and you may save more money by refinancing long before this threshold is reached.
If you have an FHA loan and the original term was more than 15 years, you must pay monthly mortgage insurance for at least 5 years before automatic termination will kick in.
(There is no borrower requested option to remove FHA mortgage insurance)
If you currently have an FHA loan and pay mortgage insurance, it would be wise to contact me and my team to see if you could save money by refinancing.
Read MoreLooking to Hire!
Posted in Shane's Blogs
I am currently looking to expand my team and bring on another member. I would like to hire someone to be my Loan Officer’s assistant and help with managing clients, marketing and more. If you know someone who fits the description below and may be interested in this opportunity please let me know! Read below to check out the job offer I am placing. Contact me at 360.698.6471 or at shanem@legacyg.com
Loan Officer’s Assistant
Job Description
Characteristics:
- Self starter
- Punctual
- Positive and upbeat
- Present well both on the phone and in person
- Ambition – move up in job
- Organized
- Good at focusing on task until completed
- Adhere to order of operations (checklist)
5 Areas of Focus:
(Training will be provide)
- Manage/update Cimmeron database
- Fully own and facilitate the E Properties marketing platforms
- Online lead generation and management facilitation
- Setting appointments
- Manage new leads
- Gathering and facilitation of finances
- 36 hour turn time is the goal
- Order Out Coordination
Overview of Schedule:
- Mon-Thursday 8-5 (32 hours a week)
- $10.00 an hour
- 90 day trial/review
Do you have a USDA Loan? Check out this article
Posted in Shane's Blogs
If you have a USDA loan and want to protect your loan with a Commitment from USDA under the old insurance structure. After 10/1/2011 the mortgage insurance requirements are going to be changing.
For loans under construction and in with application dates prior to 10/1/2011:
Send to USDA
- Subject to completion appraisal
- GUS findings
- Flood Cert
- USDA Disclosure form 1981
To obtain your commitment under the old MI structure which is a 3.5% GFee
After October 1st USDA commitments will be issued with a 2% up front fee and .300 annual (but collected monthly) fee. If you do not have a commitment by 10/1, your borrowers will be subject to the proposed MI change.
You can find this announcement on SharePoint – Secondary (link below)
http://lgsp/secondary/Lists/Secondary%20Announcements/DispForm.aspx?ID=4
Read MoreLegacy ranks in 50 Fastest Growing Companies
Posted in Shane's Blogs
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Legacy ranks 11th in PSJ’s 50 Fastest Growing Companies
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Puget Sound VA Expert, I Am Your Guy
Posted in Shane's Blogs
I recently placed a few ads in the local military papers around Kitsap County launching my new image as the Puget Sound VA Expert. I know that spending money on newspaper ads dose not seem ideal in today’s culture but I thought I would try it out. To my surprise it only took a couple hours before I received my first phone call from a man looking for advice on how to use his VA.
Although we only talked on the phone a short while I felt honored that I was able to help give him guidance on his current situation as well as inform him on what was the best decision for him to make next in regards to homeownership. As a disabled veteran myself I can’t even begin to describe to you how much pride I take in helping other military families. I feel blessed to be in the situation I am at right now and looking forward to where my business will take me next starting with helping the people I feel called to.
With that being said if you know of any military personal and or families that could benefit from my services please feel free to give them my number.
360.698.6471
Shane McGraw, VA Loan Expert
US Air Force Veteran
Loan Officer Lic # MLO-90072
Read MoreLegacy Group Ranks Top 2 in 100 Best Companies to Work For
Posted in Shane's Blogs
The Legacy Group was recently rated second best company to work for in the latest edition of the Seattle Business Magazine for 2011. You can read our section below or click the link to read the full article. www.seattlebusinessmag.com/article/midsize-company-winners
Second Place: REASON TO CELEBRATE
Washington state’s mortgage industry has suffered of late, but The Legacy Group has bucked the trend. Legacy’s impressive bottom-line success is due to its talented staff—a staff that was attracted to CEO Scott Rerucha’s fun-loving, hardworking corporate culture. Sure, Legacy has impressive health benefits, vacation time and bonus incentives. But it’s the fun stuff that sets the company apart, such as the surprise Lake Washington yacht cruise after the holiday party at Lucky Strike Lanes, and the booming stereo and 3 Pigs Barbecue in the Bellevue headquarters after a profitable month-end push. —N.H.
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