Friday, December 8, 2017

FHA increases loan limits in nearly every area of U.S. for 2018

Mortgage Quest
a dba of McCormick Lending Group, Inc.
"Don't Overpay For Your Mortgage"

The new loan limits will take effect for FHA case numbers assigned on or after Jan. 1, 2018.
FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, to set Single Family forward loan limits at 115% of median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county.
Back in 2016, the FHA increased loan limits for just 188 counties. Then, in 2017, this number jumped to 2,948 counties that saw an increase. And now, the number of counties increased even further to 3,011 counties for 2018.
In high-cost areas, the FHA’s loan limit ceiling will increase to $679,650, up from $636,150 this year. The floor will also increase from $275,665 to $294,515 in 2018.
However, in 223 counties, the FHA loan limits will remain the same.
The National Mortgage Limit for FHA-insured Home Equity Conversion Mortgages, or reverse mortgages, will also increase, rising from $636,150 to $679,650. Currently, the FHA regulations implementing the National Housing Act’s HECM limits do not allow loan limits for reverse mortgages to vary by MSA or county; instead, the single limit applies to all mortgages regardless of where the property is located.
The FHA’s minimum national loan limit, or floor, is currently set at 65% of the national conforming loan limit of $453,100. This floor applies to those areas where 115% of the median home price is less than the floor limit. Any areas where the loan limit exceeds this floor is considered a high-cost area, and HERA requires FHA to set its maximum loan limit ceiling for high-cost areas at 150% of the national conforming limit.
Click here for a complete list of FHA loan limits.
The news follows Federal Housing Finance Agency’s recent announcement that it plans to increase the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018.

Bob McCormick, President

 14362 N. Frank Lloyd Wright Blvd. #1000  Scottsdale, AZ 85260

Office 480-905-1135 
Toll Free 800-328-0144 
 Lending in Arizona and California 

mb0903631 nmls175743 nmls179756 Cadoc603J043 Equal Housing Lender

Wednesday, December 6, 2017

How to save $20,916 on your mortgage loan!

Mortgage Quest
a dba of McCormick Lending Group, Inc.

Did you know that you will pay $20,916 over the life of a mortgage loan for every .25% higher interest rate charged?*

Are you getting a Good, Fair or Great Rate?

Having worked for a few of the large banks and mortgage banking firms prior to starting Mortgage Quest in May 2000, I learned how and why these mortgage companies need to mark-up their rates that are offered to the public: large overhead expenses including office salaries, commissions, large rent/office space, several layers of management, extra quality control costs due to large staffing, etc.

Mortgage Quest was established with a business model that has reduced these large expenses so that our operating margins are the lowest in the industry and the need to mark-up interest rates was eliminated:
  • I personally controlling our pricing model which generally saves our clients up to .25% - .50% or more on their rate versus the competition.

Visit me at www.McCormickLendingGroup.com to see how I can offer this.  Also, if you have a client that is shopping for the best mortgage terms I would greatly appreciate the opportunity to offer a rate/fee quote!

Bob McCormick, President

Toll Free 800-328-0144
Email- McCormickLending@gnmail.com

Lending in Arizona and California

* Example based on a 4% versus 4.25%, 30 year fixed rate loan at $400,000 loan amount.  Savings will depend on loan amount, term and rate

NMLS 175743 AZMB 0903631 CADBO 602J043  Equal Housing Lender