Good News on the Finance Front03/14/2012 By Travis Olson, Olson Mortgage Group at PMR
This week Greece consolidated its rescue plan, with the majority of debt holders ratifying the agreement. Though the saga is surely not over, and focus now may shift to one of the other troubled European economies. This has been the biggest fear for most of the past year, so even a temporary solution that no one really believes will work is good news. The unemployment report released on Friday was more good news. The report showed an increase of 227,000 new jobs created in February, almost all of them in the private sector. This number was better than expected, and confirmation of the trend.
The previous two months' jobs were also revised higher. The unemployment rate came in flat at 8.3%, but the experts expected that number would be higher as new life in the job market brought in more people off the sidelines who had not been actively looking before. This has still been a very slow recovery, but it’s hard to discount these numbers, and it looks like the jobs recovery is slowly gaining traction.
On another note, FHA came out with a new plan for streamline refinances this week. While this is good news for some, it won’t help anyone who bought a home or refinanced their mortgage recently.
This new plan will grandfather the monthly mortgage insurance premium at .55%, instead of the current rate which is more than double that (and it is going up next month). Even though mortgage rates are near all time lows, most FHA home owners weren’t able to refinance as the higher mortgage insurance took away the advantage of getting the lower rate. This new program solves that problem, but only for people who closed on their loan before June 1, 2009.
The program and changes can be very confusing so my recommendation to you: if you have questions or would like more information please contact me directly.
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