Posts Tagged ‘refinancing’
Maryland Recording And Transfer Mortgage Tax – How Much Do You Have To Pay?
September 13th, 2011 | 
Author: I talk to a lot of people who are buying real estate or refinancing their homes in Maryland and come across the Maryland Recording And Transfer Mortgage Tax.
The mortgage tax is substantial but varies according to what type of transaction you’re doing.
This article will shed light how much you have to pay the state of Maryland if you’re refinancing your existing mortgage or taking out a new mortgage for a home purchase.
On refinance transactions, you only pay the recording tax on the difference between the existing mortgage payoff amount and the new mortgage amount.
So, if your mortgage payoff is $100,000 and your new mortgage amount is $105,000, you’ll be taxed on the new money or the $5000 difference in this case. This only applies to primary residences.
If you’re refinancing a second home or investment property, the tax is paid on the full mortgage amount.
If you’re buying a new home, you have to pay the Maryland state transfer tax. Usually, the tax is split 50/50 between buyer and seller.
If the buyer is a first-time home buyer, the buyer’s half is waived. Good news, indeed.
Now to the amount of the Maryland recording and transfer tax.
The recording and transfer tax varies according to the county the property is located in.
For example, if the property is located in Montgomery county, the recording tax is $6.90 per thousand and $10.00 per thousand if the loan amount is over $500,000.
The transfer tax, on the other hand, is 1.5% of the loan amount. Wow.
So you see the Maryland transfer tax can get expensive.
Email me at yroth@amerisave.com if you’d like to know how much you’ll have to pay the state if your home is located in another county.
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Mortgage Services Alert! Mortgage Rates Drop On Poor Jobs Number. September 2, 2011
Labor day is upon us. Take this upcoming weekend to relax. I know I will.
Guess what? We’re seeing mortgage rates drop this morning on July’s jobs report.
Nonfarm payroll employment was unchanged in August, and the unemployment rate held at 9.1 %, according to the U.S. Bureau of Labor Statistics.
This is below the market expectations for a 60,000 increase, still suggesting the economy is in the crapper.
Momentum in the private job market has clearly stalled even though it has been widely reported that U.S. corporations have trillions of dollars in capital sitting on the sidelines they are not willing to invest.
The markets will now look ahead to President Obama’s upcoming jobs speech for some guidance.
If you were on the fence re: refiancing your mortgage, now is the time. Mortgage rates have ticked back down again.
Do a personalized rate search on the blue Amerisave Mortgage box on the right side of the screen. Look for the mortgage rates with lender credits. This will minimize or eliminate all costs so you can lower your mortgage rate or shorten your mortgage term for free!
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Posted in Mortgage, Mortgage Rate, Mortgage Rate Update (by date), Mortgage Rates | 
Tags: Consolidation, FHA mortgage, interest rate, loan, mortgage, Mortgages, Rates, refinance, refinancing, yale roth | 
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Mortgage Services ALERT. Mortgage Rates Unchanged. August 31, 2011
Amazing, August 31 already! The summer is over, kids are back to school and football season is upon us.
The last day of August shows little movement in the mortgage bond market as mortgage bonds opened flat this morning.
Mortgage rates are unchanged from yesterday’s pricing.
This morning’s Mortgage Backed Securities Weekly Mortgage Application Survey shows seasonally adjusted mortgage applications decreased 9.6 % last week. This is an interesting statistic as mortgage rates are very, very low.
The unadjusted Refinance Index was down 12.2 %, while the unadjusted Purchase Index decreased 1.3 %.
My only take on this is that people may be vacationing and not thinking about refinancing thier mortgage.
The seasonally adjusted refinance and purchase indexes were -12.2 % and -0.9 %.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.32 % from 4.39 %, with points increasing to 1.3 from 0.88 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans, according to the data.
“Accounting for the increase in average points paid, effective mortgage rates were little changed last week.
Refinance application volume declined for a second week from recent highs, despite rates staying near a 10-month low, while purchase volume remained near 15-year lows,” said Mike Fratantoni, MBA’s Vice President of Research and Economics.
The fact that purchase applications remain down suggests to me that people are still insecure about their employment as now is a good time to buy a new home. Mortgage rates are low and home values are down to 2003 levels.
The ADP employment report released this morning shows nonfarm private payrolls increased 91,000 from July to August on a seasonally adjusted basis.
The change from June to July was revised down to 109,000 from 114,000. According to the report, “the trend in employment moderated somewhat in August at a pace below what would be consistent with a stable employment rate.” No surprise there.
The Challenger job-cut report released this morning showed layoff announcements slowed in August to 51,114 from July’s 66,414. This follows three consecutive months where layoff announcements had increased.
This could portend a strong showing for Friday morning’s job’s report. This can be a volitile day for mortgage rates. If you float into Friday, be ready!
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Posted in Mortgage, Mortgage Rate, Mortgage Rate Update (by date), Mortgage Rates, Refinance |
Tags: FHA mortgage, Home, jobs report, loan, mortgage, Mortgages, non farm payroll report, Rates, refinance, refinancing, yale roth |
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FHA Mortgage FAQ – What’s The Difference Between An FHA Mortgage And Conventional Mortgage?
A lot of mortgage questions I get are about FHA mortgages.
People I talk to do personalized rate searches then ask what’s the difference between an FHA mortgage and conventional mortgage? A natural question for someone shopping for a mortgage.
The first question I ask is “how’s your credit”?
For someone who has poor credit, an FHA mortgage may be a less expensive loan type.
If you have good credit, a conventional mortgage is a better mortgage. It’s that simple – really.
Also, if you have little equity in your home, FHA may be a better mortgage. Equity, by the way, is the difference between the current mortgage balance and what the home is worth.
FHA will allow you to finance a mortgage to 96.5% of the home’s value with mediocre credit. Still pretty good.
On a conventioanl mortgage, you can get 97% financing; however, your credit will have to be over 720.
If you want to take cash out of your home, FHA will allow you to go to 85% of the value of your home, while you’re capped at 80% for a conventional mortgage. The reason your capped at 80% is because it’s going to be tough getting a private mortgage insurance PMI company to write private mortgage insurance while FHA (or HUD) will insure the loan to 85% cash out of the home’s value.
Another difference that used to be in the favor of FHA is the mortgage insurance premium.
FHA mortgage charges a 1% upfront mortgage insurance premium MIP that is added to your loan amount.
So on a $200,000 loan, the upfron mortgage insurance premium will be $2000. Oh, by the way, you have to pay that no matter what the loan to value LTV ratio is.
FHA also charges a monthly MIP.
The monthly MIP premiums have increased as of April 2010, making them almost prohibitive.
Again, it doesn’t matter what the loan to value ratio is, you have to pay it for 5 years and you need 22% equity in the property before it can be removed.
On a conventional mortgage, there is no upfront mortgage insurance premium.
You will have to pay monthly PMI if the loan to value ratio is over 80%; however, you can request the mortgage servicer remove the PMI after 2 years and you have 20% equity in the property.
So, in conclusion, if your credit scores are good and you have equity in your home, a conventioanl mortgage would be a less expensive mortgage.
If your credit scores are mediocre and you have little or less equity in your home, a FHA mortgage may be better.
You can do a personalized rate search in the blue Amerisave Mortgage box on the right side of the screen.
It’ll show you conventional and FHA mortgage options, the differing mortgage payments as well as the FHA mortgage upfront and monthly mortgage premiums amounts. It’s a great tool.
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Posted in Fha, FHA Information, Fha Mortgage |
Tags: FHA mortgage, fha mortgages, Home, mortgage, mortgage rates, Mortgages, Rates, refinance, refinancing, yale roth |
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Mortgage Services ALERT. Mortgage Rates Holding Steady. August 25, 2011
Mortgage bonds opened flat this morning. As a result mortgage rates are unchanged from yesterday.
Initial Jobless Claims increased 5,000 to 417,000 from last week’s revised figure of 412,000, according to the U.S. Dept. of Labor.
This is higher than the market consensus of 405,000. The four-week moving average was 407,500, an increase of 4,000 from last week’s moving average.
According to the report, there were 8,500 claims last week and 12,500 from two weeks ago related to the Verizon strike which has
now ended.
There are still a lot of people unemployed out there.
Overall there has been little bond market reaction to the report.
Despite the unemployment numbers, mortgage rates, are very low right now.
If you are employed and want to save money and haven’t recently refinanced your existing mortgage, now is the time.
Once we see some inflation come back, mortgage rates and interest rates in general are going to rise.
Just what we need, inflation. It seems that there is already inflation out there as the cost to live continues to go up. No? Sure feels that way to me.
See if you can save money by refinancing your current mortgage.
Do a personalized rate search on the blue Amerisave box on the right side of the page. It’s free and it’ll show you the current mortgage rates, proposed mortgage payments and costs (or no costs) to refinance.
No personal information is needed and it probably takes less than 30 seconds to get the mortgage rate information you’re looking for. It’s a great tool. Take advantage of it!
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Posted in Home Loan, Interest Rates, Mortgage, Mortgage Rate Update (by date), Mortgage Rates, Refinance |
Tags: Home, Interest, loan, mortgage, mortgage rates, mortgage services, Mortgages, Rates, refinance, refinancing, yale roth |
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NEW! Mortgage Rate Update. Thursday, May 6, 2010
Mortgage rates still remain very low amid concerns over Greece and the drop in the value of the Euro.
Mortgage rates on 30 yr fixed loan types – in some circumstances (i.e. high credit, lots of equity, $350k to $417k loan amount) – are starting at 4.875% with no points!
The 15 yr note is priced equally strong with rates starting in the high 3% range with buydowns.
Go to http://www.YaleHomeLoan.com to get a personalized rate quote or call me at 561-350-7684 and see whether refinancing makes sense.
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