Conforming Loan Limits

More Loans will Be Conforming in 2018

First Meridian Mortgage is pleased to announce that we are accepting the new limits announced by the FHFA for 2018 as of right now. In the United States the 2018 maximum conforming loan limit for one-unit properties will be $453,100 – an increase from $424,100 in 2017. This is a 6.8 percent increase from the previous year. Also if you are in a high price index (HPI) area the allowance of 150% of the base limit is allowed. This will raise the High Balance Loan Limit to $679,650 for 2018. These are the loan amounts that Freddie Mac and Fannie Mae are allowed to purchase making up the largest portion of mortgage loans originated in Virginia, Maryland and Washington DC.

The net result of the loan amount changes will be that more clients will be eligible for conforming loan pricing, and more will be eligible for high balance conforming. Fewer clients will have to do a jumbo loan. This is a substantial increase versus the previous year increase. Please keep in mind that the loan limits have increased the last two years and do not always increase. They have gone down before in the past.

This will allow some that are close to the Conforming loan amount at $453,100 or close to the High Balance Conforming loan amount at $679,650 to do a no closing cost refinance and save money by moving from a higher cost loan into a lower cost loan.

To view the county limit in your area Click here.

FHA and VA Loan Limits for Virginia Click Here.

FHA and VA Loan Limits for Maryland Click Here.

FHA and VA Loan Limits for Washington DC are $453,100 and $679,650.

If you have any question please contact Kevin Retcher at 703-799-5626, or email at Kevin@firstmeridianmortgage.com.

To apply for a loan Click here, or to check on live rates click here.

Rates as of 12/14/2017 and subject to change.VA MC-928 | MD4272 | DCMLB3295 | KEVINS RETCHER 116922

Notice; Information about the author: Kevin Retcher is the Owner of First Meridian Mortgage since 1996 and can be reached at 703-799-5636, kevin@firstmeridianmortgage.com. His opinions are his and his alone, and not to be taken as legal advice. Always consult with a licensed professional. Also excuse grammar and spelling, I work with math for a living. © First Meridian Mortgage Corporation. NMLS# 180004 www.nmlsconsumeraccess.org, ©KSA Insurance agency, License NPN 8036794 VA License, Rates are subject to change without notice. Kevin Retcher is a licensed Realtor with Jobin Realty , Springfield Virginia, 703-642-8500

Trade In your Old (ARM) Adjustable Rate Mortgage for a New No Closing Cost Adjustable Rate Mortgage

No Closing Cost Adjustable Rate Refinance Program

ARM REFINANCE – Trade in your old (ARM) Adjustable Rate Mortgage for a new No Closing Cost (ARM) Adjustable Rate Arm

If or when your current ARM adjusts, or is already on its annual adjustment, you may want to consider a Zero Closing Cost or a No Closing Cost (ARM) Adjustable Rate Mortgage Refinance. The worst mistake in playing the ARM Game is not playing. You can refinance to another longer term ARM or a Fixed Rate with low to No Closing Cost often below where your current arm will adjust. Simply trade in your old Adjustable Rate Mortgage for a New Adjustable Rate Mortgage. This will save you money, secure a longer period of time, and save you from annual adjustments.

Most current (ARM) Adjustable Rate Mortgage clients will see their interest rates adjust up to 4.125% or higher. Also with the Fed on the move this could be even greater in the upcoming months. Since 1996 First Meridian Mortgage has provided NO Closing Cost (ARM) Refinancing. This is the best way to lock in a piece of time for free and if the rates fall, then you can refinance again.

Note: I get asked all the time what do I do if my ARM is about to adjust? My answer is, to trade in your old Adjustable Rate Mortgage for a New Adjustable Rate Mortgage with no closing cost. This gives the home owner more security by fixing the mortgage at a lower rate for a longer period of time than the 1 year adjustable rate mortgage they now have.

Current ARM Adjustable Rate Refinance example

Example: Value of home $400,000 with loan at $300,000

Current loan was a 5/1 ARM and the initial 5 years has past and now is adjusting yearly. If you have a 2.25% Margin tide to the Libor index (currently at 1.75) rounded up an .125 the loan will adjust to 4.125%

New loans options:

Fixed rate would be at 4.00% APR with a credit of $3375.00 toward Closing cost.

7/1 ARM 3.75% rate 3.882% APR with lender credit of $4272. This would be a NO CLOSING COST 7/1 ARM Refinance. See example

5/1 ARM 3.500% rate 3.822% APR with lender credit of $3510.00. This would be a NO CLOSING COST 5/1 ARM refinance. See example

AVG Closing cost on $300,000 are $3469.00 in Virginia.

Other options: On ARM rates if you do want to pay a portion, or all of the closing cost, the interest rate is substantially lower usually by .500% or half of a percent. You will save money vs the no cost program paying closing cost but the recoup time is longer, therefore, at risk. If the market drops and you can do another refinance you might have wasted your money. Only time will tell which way is right.

The key is to refinance your used one year adjustable rate mortgage to a lower rate longer term fixed 5/1, 7/1 or 30 yr fixed for free at the very least. If rates go down you just do it again or fix it for a longer term. Please call Kevin Retcher at 703-799-5626 for more information on the Adjustable Rate Mortgage -No Closing Cost Refinance Program.

To Apply click Here. To be contacted click here for mini form.

Rates as of 7/7/2017 and subject to change.

Licensed by NMLS#180004 @ WWW.NMLSCONSUMERACCESS.ORG

VA MC-928 | MD4272 | DCMLB3295 | KEVINS RETCHER 116922

Mortgage Broker Kevin Retcher Ranked By National Mortgage News Fairfax Virginia

First Meridian Mortgage Corporation’s Kevin Retcher Ranked as One of the Nation’s Top Originators

Mortgage Executive Magazine Releases Top Originators 2017 rankings

” Mortgage Executive Magazine compiled the most comprehensive list of The Nation’s Top Originators. Mortgage Executive Magazine seeks to recognize and celebrate the service, dedication, and hard work that the leading mortgage professionals put into serving their clients. The minimum eligibility to be considered for the list is a personal production of $30 Million in 2016. Entries cannot include loan volume of associate originators or junior originators.”

Congratulation’s To Kevin Retcher for your 2017 Ranking! #348

Kevin Retcher the owner of First Meridian Mortgage Corporation originated $53,309,549 in 2017. He has consistently been ranked in the top 1% for the last decade and has been ranked in the Top 200 multiple times. The Marines taught him to always be early, and on time means you’re late. He has never missed a closing date on a purchase in 20+ years, which is a record he is very proud of. This is why First Meridian Mortgage is one of the Best Mortgage Brokers in Fairfax Virginia/Northern Virginia area.

First Meridian Mortgage Corporation | 8305 Richmond Hwy 12A | Alexandria VA 22309 | O 703-799-5626 | www.firstmeridianmortgage.com

Kevin Retcher | 703-201-6138 | kevin@firstmeridianmortagge.com

1% down with 2% equity Boost By Lender

This program Has down payment assistance for the buyer. It is designed to help the first time home buyer put only a 1 percent down Payment and receive a 2 percent gift from the lender. This results in a 3 percent down payment to be used with the Freddie Mac 3 percent down program. This program has the option of no mortgage insurance paid by the borrower in conjunction with using lender paid mi program.

The main requirement is a 700 credit score and a max debt to income of 43%. No other home can be owned and the borrower will need to do a quick online home education class. This program gives the client an Equity Boost. The client can receive a gift from a family member for down payment and closing cost. Please call First Meridian Mortgage Corporation for details at 703-799-5626.

Many other First Time Home Buyer programs are available, FHA, Fannie Mae Home Ready, Freddie Mac Home Possible, and others.

Two Positive Changes That Will Allow You to Buy More House and Pay Less!

The positive change is that the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA) have increased loan limits for 2017. The second change is that the Federal Housing Administration (FHA) has decided to lower the Annual required mortgage insurance (MI) on loans. Basically one agency (FHFA) is allowing you to buy bigger homes and the other agency (FHA) is allowing you to pay less for that home. These new loan limits, as well as their impact to pricing and underwriting, are summarized below.

Conventional Conforming Loan Limits – are for Conforming – VA and FHA

The following tables outline the difference in maximum loan limits from 2016 to 2017, based on number of units, for Standard and High Balance/Super Conforming loans. In most of the country, the 2017 standard maximum loan limit for one-unit properties will be $424,100. In high-cost areas, higher loan limits will also be in effect.

NEW CONFORMING,FHA ,VA LOAN LIMITS 2017

Low Cost Area

(Set at 65% of the national conforming limit of $424,100 for a one-unit property.)

FHA LOW INCOME COUNTY LIMITS

For specific county loan limits, refer to the FHFA website for additional details. linkhttps://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx

FHA – Mortgage Insurance Change

FHA has reduced the annual mortgage insurance rate by .25 basis points effective with closings on or after January 27, 2017. The annual mortgage insurance is collected on all FHA loans and is the insurance monies used to meet claims in case of defaults. You can see the proposed changes in the chart below.

FHA ANNUAL MORTGAGE INSURANCE RATE CHART

FHA MORTGAGE INSURANCE 2017

EX: $424,100 (@3.25= $1845.71 PI) New loan amount

Previous MI rate (.85) = $300.40 per month

New MI rate (.60)= $212.05 per month

Previous $417,000@3.25=$1814.81 PI + $300.40= $2115.21

New LA $424,100@3.25=$1845.71 PI + $212.05= $2057.76

These exciting new developments show that the housing market is continuing to come back. The change in the FHA premium basically saves a client $88.40 on a max conforming loan at $424,100. The savings on the MI depending on the interest rate; pays for the loan increase or allows higher purchasing power for same cost as before. The combination of both of these changes allows for more purchasing power with the same payment or a lower payment buying the same house. A true win win for the industry.

Questions? Call (703)799-5626

Archive for 2017