Castro Valley, CA (PRWEB) January 14, 2015
Recently, several changes, and proposed changes, to home loan options made the news: Fannie Mae reinstated the 3% down payment, President Obama announced plans to reduce the FHA premium,(1) and “Piggyback” loans are making a comeback.(2) “At the best of times, the mortgage industry confuses people,” remarked Castro Valley, CA Realtor® Murline Monat, “all of these changes happening at the same time just multiplies that confusion.”
3% Down Payments
“For first-time or lower income buyers, down payments can seem prohibitive, that’s why the news surrounding Fannie Mae and Freddie Mac is so exciting,” Ms. Monat explained. In early December, Fannie Mae brought back the 3% down payment (instead of the more traditional 10% to 20%) for first-time buyers and owners wishing to refinance. While not as hard to qualify for, there are several restrictions to these loans including: a cap to the loan amount, dwelling type, and private mortgage insurance for buyers. Freddie Mac announced plans to restart their 3% down program in March. Murline Monat specializes in residential real estate in Castro Valley Neighborhoods.
FHA will insure loans with a 3.5% down payment, reducing the total amount borrowed, but requires mortgage insurance for the entire life of the loan. (Other programs will cancel mortgage insurance once the borrower reaches 20% equity.) As Ms. Monat noted, “Because FHA loans can be easier to qualify for, some borrowers have no other choice. Reducing the premium on the insurance could result in hundreds to thousands of dollars of savings a year.”
“Many people blame ‘piggyback’ loans for the last housing crash,” Ms. Monat commented. “That’s why it is important to note that their current form has stricter qualification criteria and requires a 10% down payment.” These loans are actually two loans packaged together. Previously, the primary loan – for 80% of the purchase price, would not require mortgage insurance and the second, for the remaining 20% would act as the down payment. New regulations allow for the primary loan for 80% and restrict the second to 10%. Borrowers must then pay the final 10% as the down payment.
“Understanding all these changes is nice. However, finding a loan agent who will shop for you and take advantage of all these changes is really more important,” concluded Ms. Monat.
A long-time Bay Area resident, Murline brings a wealth of knowledge and experience to her realty career – including an M.S in Industrial Psychology, building her own home, and group facilitation. Her background makes her an excellent champion for her clients. By ensuring her clients are appropriately informed throughout the purchasing or selling process, coordinating all the parties involved, and negotiating the best deal, Murline’s reputation in the community and realty industry is impeccable.
Before becoming a realtor in 2009, Murline Monat spent her time analyzing sales trends for both large corporations and small businesses. The difference between retail sales trends and real estate trends are minimal and she is able to support her clients in one of the most important lifestyle choices they will make. These decisions “bring great comfort and satisfaction to individuals and to families. I love being a part of that process.”
A Bay Area resident since the age of 5, Murline and her husband made Castro Valley their home because of its central location for both of their careers at the time. While a practical choice, the decision to live in Castro Valley has always been a happy one.