Through the magic of Facebook I've been reconnecting with a lot of girls from high school (I went to an all-girls high).
Carmella is a high school friend who now works with Mortgage Mobility. I asked her a few questions I thought were on everyone's mind:
Hey, when can I score that 4.5% interest rate I keep hearing about?
Looks like the end of January beginning of February. Right now it looks like its just going to be on purchases. They are working on it for refinances too.
Is there going to be any restrictions on income - either too much or too little? How about my credit score?
You will need at least a 660 credit score if you are not putting down at least 20%. There are no restrictions on income, you just simply need to qualify.
What can I do right now to lower my existing payment?
The only thing really to do to lower your payment is to refinance to a lower rate than what you currently have.
Can you show me what the difference might be in my mortgage payment?
Well today's 30 yr. fixed rate is 5.375%. On a purchase price of $200,000 with only putting down 5% your principle and interest payment would be $1082.56. On a $200,000 going FHA your payment would be $1151.94. That figure is principle and interest only. With 3% down. FHA rates today are 5.75%.
****Special footnote - Carmella wrote these answers on 12/12, and when I checked in with her yesterday the rates had DROPPED and the 30 yr fixed rate is 5% today and FHA is 5.5%.
I'm in danger of going into foreclosure. Help! What should I do?
Call your current mortgage company to renegotiate. They will help you. They do not want your house. They will help you by either lowering your interest rate or give you deferred payments for a couple months until you get on your feet.
There's so much happening on the mortgage front that I would really encourage you to call Carmella and talk about your options. Purchase or re-finance, you may be able to score a GREAT mortgage rate.
Here's Carmella's contact information: