Some quick Items. RATES dropped (yawn) and are in the UNDER 4% range on a 30 year fixed loan.
- RD is adding monthly RD FEE but reducing upfront fees...it is NOT Mortgage Insurance Monthly though
- FHA is lowering loan limits...but apparently not in Gallatin County. The FHA loan LIMITS Tool is here
- Treat: VA is lowering their funding fees! (by 50% with 5% down...see chart below)
Cheers! Chad
Details: >>>>
VA Funding Fee Changes Effective October 1, 2011
(YES we do offer VA loans!)
VA's funding fee is an upfront fee that is often financed so it increases the loan amount an payment slightly. VA doesn't charge a monthly mortgage insurance fee so the upfront "VA Funding Fee" compensates for that. If a veteran is disabled due to military service, they may be eligible to have the fee waived altogether. Remember that National Guard Reservists with active duty service MAY also qualify for a VA loan and other VA benefits. 
FHA Changes as of 10/1/2011 for Montana and everywhere else.
You may also see that FHA has announced the lowering of its limits effective 10/1/2011. I don't see where our county for Bozeman Montana FHA loans (Gallatin) is going to be affected so please let me know if you know something different. For your reference, here is a link to HUD.Gov's loan limit tool. You can see what limits are for FHA loans in Montana or anywhere FHA loans are offered. The counties that are most affected are the ones that were considered "high cost" where their limits are dropping from $729,000 and change to $625,500. The MINIMUM floor...so the most the loan amount is dropped to is $271,050.
Rural Development loans!
RD or USDA guaranteed loans are also changing as of 10/1/2011. They are lowering their upfront fee from 3.5% to 2% but adding a monthly fee equal to .00030% of the loan amount monthly. (About $30 on a $100,000 loan)
HOWEVER: when a client is financing in LESS money with the lower up front fee, the net difference is just over $20 bucks/month.
Example: Currently for a $100,000 Montana Rural Development Purchase Loan there is an additional $3500 financed in. With changes to the RD Guaranteed Loan program as of October 1, 2011 there will only be an additional $2000 financed. The smaller loan amount makes a smaller payment...
Note that the monthly "RD FEE" is NOT considered Mortgage insurance so if you check with your accountant, none of the tax benefits sometimes associated with mortgage insurance apply.
Chad
-- Chad Schauers
Montana Mortgage Lender, Bozeman, Montana
NMLS# 583046
