kardashian-kid-sister-kylie-jenner-is-selling-home

Kylie Jenner: Taylor Hill/Getty Images; House: Realtor.com

Price: $3.9 million

Calabasas, California

Amenities

• 4,851 square feet


• 5 bedrooms


• 7 baths


• Home theater

Her romance with boyfriend Tyga has kept us guessing, but “Keeping Up with the Kardashians” kid sister Kylie Jenner certainly has inherited the family real estate gene. She has put her Tuscan remodel in the Los Angeles County community of Calabasas for up for sale.

The youngest daughter of Kris and Caitlin Jenner remodeled the interior in a black-and-white theme, repurposed a bedroom into a “glam room” and transformed the master suite into a reality star’s dream, with a spacious walk-in closet, sitting area and dedicated shoe and purse closets.

Check Mortgage Rates

kardashian-kid-sister-kylie-jenner-is-selling-home

refinancing-surges-as-mortgage-rates-stay-low

Mortgage rates remained near historic lows this week, unleashing a deluge of phone calls and emails to mortgage companies from homeowners looking to refinance their existing loans.

Those who want to take advantage of the opportunity need to be proactive and well-organized, says Kirk Chivas, a mortgage broker at First Commerce Financial, a mortgage company in Wixom, Michigan.

“The people who call in, email in or complete a form online are the people we’re helping. We haven’t even begun to pick up the phone and start dialing because there are so many inquiries coming to us,” Chivas says.

RATE SEARCH: Shop today for a mortgage refinance.

Homeowners should expect to start with a quick conversation about their current loan, the last time they refinanced, how long they plan to keep their home and whether they’re paying for mortgage insurance. If the numbers make sense — and Chivas says they often do — the process moves forward.

Patience is important, Chivas says, because lenders are “thoroughly backed up,” trying to move the sudden flood of applications through a full-to-bursting pipeline.

The volume of new applications surged 14.2% in the week ending July 1 and another 7.2% in the week ending July 8, compared with the prior weeks, according to the Mortgage Bankers Association. The recent week’s data were adjusted to account for the Fourth of July holiday. Refinances accounted for 64% of mortgage application activity in the recent week, up from 58.1% 2 weeks earlier.

Rates this week

The benchmark 30-year fixed-rate mortgage rose this week to 3.57% from 3.52%, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.17%. Four weeks ago, the rate was 3.69%.

The mortgages in this week’s survey had an average total of 0.23 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 3.91%. This week’s rate is 0.34 percentage points lower than the 52-week average.

• The benchmark 15-year fixed-rate mortgage remained unchanged, at 2.85%.


• The benchmark 5/1 adjustable-rate mortgage rose to 3.04% from 2.95%.


• The benchmark 30-year fixed-rate jumbo mortgage rose to 3.67% from 3.64%.

Weekly national mortgage survey

Results of Bankrate.com’s July 13, 2016, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:

	30-year fixed	15-year fixed	5-year ARM
This week’s rate:	3.57%	2.85%	3.04%
Change from last week:	+0.05	N/C	+0.09
Monthly payment:	$747.39	$1,127.59	$699.21
Change from last week:	+$4.62	N/C	+$8

refinancing-surges-as-mortgage-rates-stay-low

cancel-fha-mip-as-home-values-rise-mortgage-rates-drop

FHA Is A Powerful Home Buying Tool

First-time home buyers love FHA loans.

In fact, nearly forty percent of buyers age 36 and younger use an FHA loan to buy a home, according to loan software company Ellie Mae.

FHA credit and underwriting requirements are less stringent as compared to conventional mortgage loans.

Homeowners can typically qualify for an FHA loan with a downpayment as low as just 3.5%, and a credit score of just 580 or higher.

But FHA loans aren’t “perfect.” Most come with a mortgage insurance premium (MIP) that cannot be canceled as long as you keep the loan.

That doesn’t mean canceling FHA mortgage insurance is impossible. Quite the opposite. You can refinance out of FHA mortgage insurance, and you might be able to do it now.

Click to see today’s rates (Jul 15th, 2016)

FHA Flexibility Comes With A Cost

Homeowners are drawn to FHA loans for a variety of reasons:

• Low downpayment


• Flexible credit requirements


• Higher debt-to-income allowances


• Low interest rates


• Streamlined FHA refinancing


• High seller contribution maximums

The most common drawback that buyers associate with FHA loans, however, is the mortgage insurance requirement.

A byproduct of FHA loan’s flexible standards is that FHA-insured mortgage loans require not one, but two different types mortgage insurance: upfront and annual mortgage insurance.

Upfront Mortgage Insurance Premium (UFMIP)

Suitably named, this type of mortgage insurance is a one-time premium charged upfront, equalling 1.75% of the loan amount.

FHA allows homeowners to roll this fee into the loan, and the majority of homeowners choose to do so.

This type of mortgage insurance can’t be refunded if you refinance, unless it’s into another FHA loan. But then you would have FHA MIP again. It’s better to refinance into a conventional loan if you can, despite losing this lump sum cost.

Annual Mortgage Insurance Premium (MIP)

Although the name implies an insurance premium that is charged once a year, FHA annual insurance is actually charged monthly. It is included as part of the borrower’s mortgage payment.

The annual fees vary according to downpayment and loan term but the most common annual MIP fee is 0.85% of the loan amount.

Homeowners using an FHA loan to purchase a home in 2016 who put 3.5% down will have to pay the annual mortgage insurance for the life of the loan, or up to 30 years.

Borrowers who put down 10% or more will reduce the timeframe required for annual insurance to just 11 years.

Click to see today’s rates (Jul 15th, 2016)

Home Values Skyrocket. Cancel Your FHA MIP

Paying FHA mortgage insurance doesn’t have to be permanent. You just have enough equity to refinance into a conventional loan.

According the National Association of REALTORS®, the median home listed for sale in the U.S. in May 2016 was $250,000, a full 9% higher than one year ago.

Some experts are predicting that certain areas could see appreciation upwards of 15% in 2016.

That means more homeowners will be in a position to refinance out of FHA, and very soon.

Once a homeowner hits 20% equity based on current value, they can refinance into a conventional loan — one that does not require any mortgage insurance whatsoever.

The process to do so is straightforward. Get an estimate of value from a local real estate agent or loan officer. Online home valuation websites can be inaccurate, so be careful with those.

See if you have around 20% equity based on your home’s estimated value. Be sure to add closing costs onto your existing loan balance if you do not wish to pay them out of pocket.

For example, you purchased a home three years ago.

• Original purchase price: $200,000


• Original FHA loan amount: $196,375


• Payment with FHA MIP: $1,186

After three years, you’ve paid off principal, and your home’s value has risen. Both these factors help you cancel your FHA MIP.

• New conventional loan amount: $188,000


• Current Value: $235,000


• Loan-to-value: 80%


• New payment (no PMI): $898

Refinancing out of FHA MIP can yield substantial savings. Homeowners who received an FHA loan prior to January 2015 are paying quite high FHA mortgage insurance premiums. This is because FHA dropped premiums by 35% in 2015, but only for new FHA applicants.

Pre-2015 FHA home buyers can get a double savings effect: they are tapping into today’s low rates and canceling high FHA mortgage insurance, with one refinance.

What Are Today’s Rates?

If you’re paying FHA mortgage insurance you could be paying too much. FHA homeowners should consider checking their current home value and refinance eligibility.

Doing so could end their FHA MIP obligation in as little as 30 days.

Get today’s FHA mortgage rates now. Your social security number isn’t required and all rate quotes come with access to your mortgage credit scores.

Click to see today’s rates (Jul 15th, 2016)

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

Try the Mortgage Calculator

cancel-fha-mip-as-home-values-rise-mortgage-rates-drop

Mortgage Refi's Surge, Purchase Loans Flat - Builder Magazine

Mortgage applications increased 7.2% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 8, 2016. This week’s results included an adjustment for the Fourth of July holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 7.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 14% compared with the previous week. The Refinance Index increased 11% from the previous week. The seasonally adjusted Purchase Index was unchanged from one week earlier. The unadjusted Purchase Index decreased 20% compared with the previous week and was 5% lower than the same week one year ago. Last year, the Fourth of July fell in the prior week.

The refinance share of mortgage activity increased to 64.0% of total applications from 61.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.2% of total applications.

The FHA share of total applications increased to 10.0% from 9.5% the week prior. The VA share of total applications decreased to 12.1% from 12.8% the week prior. The USDA share of total applications remained unchanged at 0.6% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.60 percent, from 3.66%, with points increasing to 0.36 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.61% from 3.67%, with points increasing to 0.32 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.53% from 3.56%, with points increasing to 0.32 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.88% from 2.96%, with points increasing to 0.34 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.78% from 2.85%, with points decreasing to 0.25 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

Mortgage Refi's Surge, Purchase Loans Flat - Builder Magazine

getty-realty-up-33-8-since-smartrend-uptrend-call-gty

Trading Post-Brexit Volatility with Confidence

In the weeks following the Brexit vote, volatility has ruled the markets. Continue reading here.

getty-realty-up-33-8-since-smartrend-uptrend-call-gty

refinance-into-a-15-year-mortgage-and-save

PrintSubscribe

refinance

By Poonkulali Thangavelu • Bankrate.com

Refinance »

Marilyn Nieves/Getty Images

Refinancing from a 30-year mortgage into a 15-year mortgage is an excellent way of taking advantage of today’s low interest rates. You pay more every month, but cut your overall interest payments by tens of thousands of dollars over the life of the loan.

With the interest rate differential between a 30-year fixed mortgage and a 15-year fixed mortgage hovering at around three-quarters of a percentage point, borrowers continue to find this an attractive refinancing option.

RATE SEARCH: Shop today for a 15-year mortgage.

Mike Henry, senior vice president for residential lending with Dollar Bank in Pittsburgh, notes, “When we get into times of high volumes of refinancing, like we’ve had for the last 2 to 3 years, 15-year is more than half of what is refinanced. A lot of that is people in 30-year loans refinancing to 15. There are a lot of benefits going from a 30 to a 15.”

15-year loans cost less interest over time

One benefit is that by switching to a lower mortgage rate and term, you would save on the interest payments you make for the duration of the mortgage.

Take a hypothetical borrower who bought a house in 2011 with a a $200,000, 30-year mortgage at 4.5%. Monthly principal and interest are $1,013. By refinancing 5 years later into a 15-year mortgage at a lower interest rate, the monthly payments would be higher, but she would end up saving tens of thousands of dollars in interest payments over the life of the loan.

Scenario 1: 30-year loan, no refinance Pat gets a $200,000 mortgage at 4.5% and pays it off in 30 years:
	30-year fixed
Interest rate	4.5%
Loan amount	$200,000
Monthly payment	$1,013
Total interest paid	$164,813

Scenario 2: Refinance to 15-year loan Alex gets a $200,000 mortgage at 4.5%. Five years later, Alex refinances the outstanding balance of $182,316 into a 15-year mortgage at 3%.
First 5 years: 30-year fixed
Interest rate	4.5%
Loan amount	$200,000
Monthly principal and interest	$1,013
Interest paid in 5 years	$43,118
Next 15 years: 15-year fixed
Interest rate	3%
Loan amount	$182,316
Monthly principal and interest	$1,259
Interest paid in 15 years	$44,311
Total interest paid on both loans over 20 years	$87,429

15-year lets you pay off loan faster

You pay off a loan faster with a 15-year mortgage because the term is shorter, so you end up free of mortgage debt faster.

Bruce Luecke, formerly vice president of product development for Nationwide Bank in Columbus, Ohio, says, “This might be skewed towards people who have more disposable income and want to pay off their loan faster. Certainly, the opportunity is to free themselves faster from housing debt, if that’s what makes sense for them personally.”

You could decide instead to keep the 30-year loan and continue with a lower monthly payment and invest the money in hopes of a higher return.

Featured Rates

View mortgage rates in your area Hide mortgage rates in your area

15-year loans charge fewer fees

Another benefit is that you could pay lower fees to get a 15-year mortgage.

Fannie Mae and Freddie Mac charge fees, called loan-level price adjustments, that vary according to credit score and loan-to-value. The fees are “applicable for all mortgages with terms greater than 15 years” — so they don’t apply to mortgages of 15 years or shorter.

For borrowers who are comfortable with the higher 15-year payment, and who would have to pay these fees on a 30-year loan, “the 15-year is a nice option,” says Bob Walters, chief economist for Quicken Loans in Detroit.

RATE SEARCH: Find lenders that offer 15-year mortgages.

But 15-year loans have higher payments

The downside to refinancing into a 15-year mortgage is the higher monthly payments.

Comparison: $275,000 mortgage, 30-year vs. 15-year
Term	30 years	15 years
Interest rate	4.5%	3%
Monthly principal and interest	$1,393	$1,899
Total interest paid	$226,618	$66,838

Some borrowers might prefer to keep a 30-year mortgage and make higher payments whenever they feel comfortable doing so, in a bid to pay off the loan faster without tying themselves down to a required higher payment. This approach is more common when the rate differential between the 15-year and the 30-year mortgage is low.

Try Bankrate’s calculator to help you decide between a 15-year or 30-year mortgage.

• Share this story


• 
  
  
  
  
  
  
  


• LinkedIn


• Delicious


• Reddit


• Stumbleupon


• Email story

advertisement

Related Links:

• VA home loans offer good deals


• A Look at VA Streamline Refinance


• A Look at VA Cash-Out Refinance

Related Articles:

• Refinance into a VA loan


• Refi even if it means adding PMI?


• When to refi a mortgage

Bankrate.com’s editorial, corrections policy

Updated: July 13, 2016

refinance-into-a-15-year-mortgage-and-save

Big Price Hikes for Medicare Premiums in 2017?

Medicare

printorder a reprint

Some Medicare beneficiaries could see rate increases of 22% next year.

By Martha Lynn CraverSee my bio, plus links to all my recent stories., From The Kiplinger Letter, July 8, 2016

Follow @Kiplinger

Thinkstock

Retirees, brace yourselves: Some participants may see double-digit premium hikes for Medicare Part B in 2017.

See More: 11 Common Medicare Mistakes

Congress figures to step in before the bills are due, as it did last year. But if it doesn’t, premiums for about 30% of beneficiaries could jump 22%, from $121.80 per month to $149 a month in January 2017, if the cost-of-living adjustment for Social Security is low, as expected. The COLA for next year is likely to be quite small: 0.2% to 0.8%. The actual rates for Part B (which covers the costs of doctor visits and outpatient care) will be announced in October and take effect January 1.

When Social Security COLAs are very low or nonexistent, as was the case this year, about 70% of folks are protected from paying more for Medicare than they receive in the form of a raise in their monthly benefit checks. That sticks other recipients with the bill, specifically:

• those who enroll in Part B in 2017,
  


• people who don’t have their premiums deducted from Social Security payments,
  


• individuals with annual incomes above $85,000,
  


• and people eligible for both Medicare and Medicaid.

For the last group, known as “dual eligibles,” Part B premiums are paid by the state where they live.

More on Medicare »

Editor’s Picks From Kiplinger

• Quiz: Make Sense of Medicare


• Guide to Enrolling in Medicare

Big Price Hikes for Medicare Premiums in 2017?