Once the HAMP 2.0 program ends the refi boom will be over

IF mortgage rates increase, you won’t see a large refinance activity for many years.

Mortgage refi boost may be short-lived

By Jon Prior June 25, 2012 • 11:01am

The refinancing surge on government-backed mortgages may run out in August, bank analysts said Monday.

Fannie Mae and Freddie Mac borrowers already began rushing to an expanded Home Affordable Refinance Program implemented by many banks in March. But on June 11, the Federal Housing Administration allowed loans endorsed before May 31, 2009, to refinance under a cheaper mortgage insurance premium structure than was implemented in November 2010.

The results were immediate. The Mortgage Bankers Association refi index increased 19% during the week ending June 8. It was the highest point since early 2009. Because lenders are now required to obtain case numbers from FHA only when there is an open loan application, refinance volumes began to increase before the June 11 effective date.

The index then surged again. For the week ending June 15, the MBA index showed refi applications on government loans increased 120%. (Click on the graph below to expand.)

Santa Ana Overview

Proprietary OC Housing News home purchase analysis

611 South SUSAN St Santa Ana, CA 92704

$349,900 …….. Asking Price
$230,000 ………. Purchase Price
5/4/2001 ………. Purchase Date

$119,900 ………. Gross Gain (Loss)
($18,400) ………… Commissions and Costs at 8%
============================================
$101,500 ………. Net Gain (Loss)
============================================
52.1% ………. Gross Percent Change
44.1% ………. Net Percent Change
3.7% ………… Annual Appreciation

Cost of Home Ownership
——————————————————————————
$349,900 …….. Asking Price
$12,247 ………… 3.5% Down FHA Financing
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$337,654 …….. Mortgage
$89,643 ………. Income Requirement

$1,573 ………… Monthly Mortgage Payment
$303 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$87 ………… Homeowners Insurance at 0.3%
$352 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,316 ………. Monthly Cash Outlays

($240) ………. Tax Savings
($504) ………. Equity Hidden in Payment
$16 ………….. Lost Income to Down Payment
$107 ………….. Maintenance and Replacement Reserves
============================================
$1,695 ………. Monthly Cost of Ownership

Cash Acquisition Demands
——————————————————————————
$4,999 ………… Furnishing and Move In at 1% + $1,500
$4,999 ………… Closing Costs at 1% + $1,500
$3,377 ………… Interest Points
$12,247 ………… Down Payment
============================================
$25,621 ………. Total Cash Costs
$25,900 ………. Emergency Cash Reserves
============================================
$51,521 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..

We're sorry, but it seems that we're having some problems loading MLS # P825855 from our database. Please check back soon.

	$275,000 3410 West CHARLAINE St		0.1 miles 3 bd / 2 ba 1,202 Sq. Ft.
	$289,950 925 South JACKSON St		0.28 miles 3 bd / 1.5 ba 1,149 Sq. Ft.
	$350,000 2609 West ADRIN Way		0.66 miles 3 bd / 2 ba 1,099 Sq. Ft.
	$375,000 1221 South KING St		0.68 miles 4 bd / 3 ba 1,599 Sq. Ft.
	$395,000 1234 South KING St		0.69 miles 3 bd / 2 ba 1,551 Sq. Ft.
	$305,000 314 South S PACIFIC AVE Ave		0.73 miles 3 bd / 2 ba 1,426 Sq. Ft.
	$360,000 3402 7TH		0.74 miles 2 bd / 1 ba 1,055 Sq. Ft.
	$255,000 521 North BEWLEY St		0.77 miles 3 bd / 1 ba 1,140 Sq. Ft.
	$1,250,000 1032 South ELLIOTT Pl		0.79 miles 6 bd / 5.5 ba 1,362 Sq. Ft.
	$390,000 714 North JACKSON St		0.85 miles 4 bd / 2 ba 1,359 Sq. Ft.

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