1.  Lower your monthly mortgage payment

With rates back down to historic lows, thousands of borrower are lowering their monthly payments by refinancing to a lower interest rate.  And, with zero closing costs from CapCenter, you immediately realize the benefit of the lower monthly payment.

2. Consolidate your debt

Low mortgage rates make it a “no brainer” to pay off higher interest rate debt such as credit cards.

3.  Switch to a fixed rate product

Protect yourself from higher future interest rates by locking in a low fixed rate for the life of your loan.

With CapCenter’s zero closing cost loans, even a small rate difference can lead to substantial savings every month and over the life of your home loan.  Our process is so efficient and easy – we’ll do the work and you enjoy the savings!

FHA loans are quite popular these days, especially for new home purchases.  The 3.5% down payment is extremely attractive to first time home buyers and others seeking a low down payment loan.  FHA loans also allow a non occupant co-borrower (such as a parent) to co-sign on the loan. 

We are often asked how long the Mortgage Insurance must stay on an FHA loan, and the answer, as explained below, depends on the loan term. 

This is an excerpt from the FHA website (http://www.fha.com/fha_requirements_mortgage_insurance.cfm):

Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20 percent.

New FHA Annual Mortgage Insurance Premium
President Obama signed a bill in August of 2010 giving HUD the flexibility to increase Annual Mortgage Insurance Premiums. According to Mortgagee Letter 11-10, the increase in Annual Mortgage Insurance Premiums is effective for all case numbers dated on or after April 18th 2011.

HUD is implementing a 25 basis point increase in the annual premium for terms of greater than 15 years and equal to or less than 15 years. On loans with greater than 15 year terms, the new amount depends on the down payment. If the down payment is equal to or greater than 5%, the new Annual Premium is 110 basis points (bps). If the down payment is less than 5%, the new Annual Premium is 115 basis points (bps).

On loans equal to or less than 15 year terms, the new amount depends on the down payment. If the down payment is equal to or greater than 10%, the new Annual Premium is 25 basis points (bps). If the down payment is less than 10%, the new Annual Premium is 50 basis points (bps).

Upfront Mortgage Insurance Premium
Effective for loans on or after October 4th, 2010, for FHA regular purchases and refinance products, the Upfront Mortgage Insurance Premium is 1.00%, which decreased from 1.5%. This amount remains unchanged.

FHA’s monthly mortgage insurance payments will be automatically terminated when these conditions occur:

• For mortgages with terms 15 years and less and with Loan to Value ratios 90 percent and greater, annual premiums will be canceled when the Loan to Value ratio reaches 78 percent regardless of the amount of time the mortgagor has paid the premiums.
• For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent, provided the mortgagor has paid the annual premium for at least 5 years.