Chattanooga Real Estate Blog

FHA has now announced more tightening of underwriting guidelines.

• Up front mortgage insurance premium increased to 2.25
• 10% down payment for buyers with a FICO of less than 580.
• Seller concessions reduced from 6% to 3%

No specific date on when these changes go into effect, just sometime in the spring.  Stay tuned!

Woo Hoo!!!!!  THDA just announced they are lowering their interest rate to 5% effective Tuesday, October 20

Great Advantage is 5.3% (2% assistance)

Great Start is 5.6% (4% assistance)

Bankrate.com recently conducted its annual national survey of average origination, title, and closing costs, for a $200,000 loan, assuming a 20 percent down payment and good credit.

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Nationwide, the average origination and title fees on a $200,000 mortgage this year totaled $2,732, according to Bankrate’s annual survey of closing costs. The fees in the survey don’t include taxes, insurance or prepaid items such as prorated interest or homeowner association dues.
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So how did Tennessee do, and where did our state rank nationally?

Tennessee ranked 12th highest in the nation (a significant jump from our 24th place ranking in 2008) with total average costs of $2,901 … $169 higher than the national average.

On July 29, 2009, the Federal Reserve Board issued a new one-page publication, “5 Tips for Shopping for a Mortgage,” to help consumers find the mortgage that is best for them. The five tips, each of which includes more detailed advice and helpful links, are:

1. Know what you can afford.
2. Shop around – compare loans from lenders and brokers.
3. Understand loan prices and fees.
4. Know the risks and benefits of loan options.
5. Get advice from trusted sources.

Sound advice!!