Save Big on Purchase or Refi With FHA Reduced Mortgage Insurance Premium in 2015

Applying for an FHA mortgage on a new purchase or refinance after January 26, 2015 could save you hundreds of dollars per month and thousands of dollars over the life of the loan on your current or new purchase home mortgage insurance premium (MIP).


For all purchase and refinance FHA loans with a term greater than 15 years, approved borrowers will see a .5% MIP reduction. In plain terms, the reduction in MIP is similar to lowering your mortgage interest rate by half of a percent.


Current FHA loan holders may benefit by considering a streamline refinance to gain monthly and annual savings with the reduced MIP, while rates remain at an all time low. With a streamline refinance, borrowers are not required to appraise their home or verify income.

How You Can Save With a Streamline Refinance today

 Below is an example of the savings that an average current FHA loan holder may expect to see with a streamline refinance and an MIP reduction.


Your Current FHA Loan

Streamline Refinance After 1/26/15

Loan Amount



Interest Rate












Principal & Insurance












Total Monthly Payment




Total Monthly Savings with Streamline Refinance: $202.05


 5 Things to Know About the FHA Mortgage Insurance Reduction:


         For all FHA loans the insurance premium will be reduced by 50 basis points (0.5%) on both purchase and refinance transactions.


         Applies to all purchase or refinance FHA loans with terms greater than 15 years.


         There is no change in premium for loans with a term of 15 years or less.
The reduction affects all loan types with the exception of FHA streamline refinances made before May 31, 2009.
There is no change to the 1.75% upfront mortgage insurance premium.


         With a streamline refinance, there is no appraisal or income verification required.


Call me today to see how I can help you lower your MIP and monthly mortgage payment!

Jonathan Joubert, SR. Loan Officer
NMLS 19727
Direct: 401-490-7126
Email: jjoubert@primeres.com




Primary Residential Mortgage Hosts Grand Opening for Newport, RI Office


Primary Residential Mortgage, Inc., one of the premier mortgage lenders in the country, announces the grand opening of a new branch in Newport, Rhode Island. The Grand Opening and ribbon cutting ceremony will be held in partnership with the Newport Chamber of Commerce, on Wednesday, October 22, from 4-6pm. Business professionals and the public are welcome to attend (RSVP required).


Branch Manager Richard Brandariz is a born and raised native of Aquidneck Island, and is actively involved in the community of Portsmouth. Brandariz currently sits on the Portsmouth Pop Warner Football Board, as well as the Portsmouth Youth Basketball Board. He has also coached Pop Warner football, and Portsmouth basketball and baseball for the last five years. Rich also finds time to volunteer and be a part of the Portsmouth Rotary Club and Newport’s “Rebuilding Together” project which annually rehabilitates a home for community members who do not have the funds to upkeep their residence. Finally, Rich is a member of the United Congregational Church in Middletown, RI.


Utilizing in-house processing and underwriting, Brandariz and his team with Primary Residential Mortgage will assist home buyers with the purchase or refinance of a home using programs such as the new first time buyer tax credit, FHA, VA, USDA, 203k or conventional mortgages.


Anyone interested in attending Grand Opening for the new office of Primary Residential Mortgage on October 22nd should RSVP to Sara Bagwell at sbagwell@primeres.com or call 401-490-7112 for more information.


About Primary Residential Mortgage, Inc.:  Founded in 2001, Primary Residential Mortgage, Inc. is the premier lender in the mortgage industry.  With over 275 branches across the US and with unsurpassed service and dedication to their borrowers, the company has been able to steadily elevate as a leader in residential mortgage lending. Rhode Island Licensed Lender, Department of Business Regulation Division of Banking, Licensed as PRMI, INC. Lender 20041715LL. Equal Opportunity Lender. Branch NMLS#1234030. PRMI NMLS# 3094.


Ken Cesaro Tries to Outsmart the #IceBucketChallenge



I challenge YOU to take the ALS Ice Bucket Challenge with me!

Post videos on Facebook to join me in raising awareness and money for ALS.




--Ken Cesaro


For more info on the Ice Bucket Challenge, visit the ALS website


4 Things to Avoid While Applying for a Mortgage

Don’t Apply for New Credit/ Make Big Purchases

We know you’re excited about getting into your new home. But don’t jump the gun by going out to buy all new furniture or appliances. Applying for new credit, co-signing for credit, or opening up new credit cards could potentially adversely affect your rate or get your loan denied.  Making this type of change could dramatically impact your debt to income ratio if you apply and/or use new credit. Your Loan Originator will be notified of any new credit or applications, which will have to be explained and documented and may delay the process of your loan application.


Don’t Close Out Credit

Closing credit or banking accounts will ­­­­­­­­­­­negatively impact credit scores and should be avoided during the mortgage application process.


Don’t Move Your Money Around/ Make Large Deposits

Though you are not technically opening or closing accounts, moving large sums of money around within banking accounts or making cash deposits, large deposits or withdrawals can raise a red flag in the process. You must work with your Loan Originator to document any and all movement or large deposits.


Don’t Quit or Switch Your Job

This can seem like a simple “don’t” on the list, but in addition to credit, your savings, investments and income are also very important factors for a mortgage approval.  Your lender will verify employment up until the day of the closing.

As always, your Licensed Loan Originator is there to help you have a successful and seamless close on your mortgage. Be sure to discuss your unique situation with your lender.





Waiting to Buy a Home Could Cost You Cold, Hard Cash

“I’m going to wait until the interest rates and housing prices go down before I buy a house”

“It’s just not the right time”

“I don’t think I can afford it”

We’ve heard it all before. Excuse after excuse as to why people wait to achieve the dream of home ownership. We know the idea of buying a home can be intimidating, but the fact is the cost of waiting to buy could potentially be costing you thousands of dollars. To demonstrate our point, the chart below shows a 10% increase in Rhode Island housing prices, with the interest rate rising about 1% over the past year.


As you can see, the cost of waiting only one year will increase your monthly payment by $205.35. That’s $73,926 over 30 years! With this trend continuing (and economists and industry experts believe it will), interest rates and housing prices will rise through 2015.What does this mean to the potential home buyer? Waiting to buy doesn’t just cost you dollars and cents. It costs you the opportunity for a better home and may even prevent you from qualifying for a loan for suitable housing. It’s not all bad, though. The real estate market is forecasted to retain healthy gains in 2014, despite steady increases of home prices and interest rates. So, whether you’re a first time home buyer or just looking for a new place to call home, the time to buy is now.




5 Factors that Determine Your Credit Score

I’ve been a licensed Loan Originator for 13 years and the most common misconception I’ve found among my clients is how credit scores work. To keep you on top of your credit while you prepare to refinance or purchase a home, you should be aware of thefive factors that determine credit score.

1.Payment history is a large factor and the one that first comes to mind when thinking about credit scores. Your payment history is the number one thing that will be evaluated for a credit score which determines whether or not you are capable of repaying debt.

2.Outstanding debt is almost as heavily weighted in the credit score calculation as payment history. Outstanding debt is not only based on how many credit cards and how much debt you have, but also whether or not you’ve reached your credit limits. For example, person “A” has maxed out a $500 limit credit card. Person “B” has a $20,000 balance with a $50,000 limit. Though person “B” physically has more financial debt, person “A” will have a lower credit score based on his/her ability to manage available credit.

3.Duration of credit, or the amount of time you’ve had a credit card or loan, is also an element in determining your credit score. Keeping your accounts open and active is important in building credit. Most importantly, closing credit card accounts can adversely affect your credit score because it shortens the length of your credit history.

4.Frequent inquiries for new credit card accounts in a short period of time can also have a negative impact on your credit score.

5.Type of credit is the final main factor in determining a credit score. While all credit may seem the same, a the use of a store credit card (i.e. Macy’s) is weighted differently than installment debt (student loan, vehicle loan or mortgage) because an installment loan has a defined end date, unlike a credit card.



FHA Back to Work Program Can Put Borrowers In A Home Just 12 Months Following Short Sale, Foreclosure

Under the new federal program called "Back to Work - Extenuating Circumstances", if you have had a foreclosure, short sale, deed-in-lieu of foreclosure, or have declared bankruptcy you may qualify for a new home loan if you are back to work and can document the extenuating circumstances.

Do you or your past clients qualify?

Can you explain and provide documentation of mortgage/credit problems resulting from financial hardship?

Have you re-established a responsible credit history?

Are you willing to complete HUD approved housing counseling prior to applying for a new FHA mortgage?

You may qualify!


Call Ken at (401) 641-0019 for more information!




Win $200 for Your Best Halloween Costume from Primary Residential Mortgage!

So you think you, your child or your furry friend has the best Halloween costume out there?
Show it off and earn votes for your chance to win $200!


Whether you'll be rocking the town with a little Elvis impersonator or picking up treats with a ghoulish zombie this Halloween, we want to see pictures of your best dressed trick-or-treater! Just snap a photo on or before Halloween and submit it for your chance to win! You can submit as many photos as you like by Saturday, November 2. Then you and everyone else can vote for your favorite entries! Voting begins on October 8th and concludes on November 8th, so get your photos in early to help you get more votes by the deadline!



Entries can be submitted via Facebook, Twitter or Instagram.

To submit through Facebook, visit Facebook.com/PrimaryLocal or click here.

To submit through Twitter, please tweet photos with #HalloweenCostumeContest

To submit through Instagram, please use #CostumeContest2013


The photograph with the most votes by Friday, November 8th will take home the top prize- a $200 Visa Gift Card. The shot with the second highest number of votes will be awarded a $50 Visa Gift Card!


Back to School: Cashing Out to Help Pay for College


If you have kids in their mid teens or even younger, you’ve probably thought more than you wanted about their plans after high school.  If you fall into this category you may also know the hot topic is that federal student loan rates have doubled in the past few months making it even more expensive for your children to get a college education.  Private student loan rates are even higher. 


Double rates mean that most loans will actually cost more than 4 times more to pay them back.  Unless your child is of the lucky few to receive a full boat to college, there’s a pretty good chance they’ll be acquiring some type of student loan debt to get their diploma.  And now it costs considerably more. Yikes.


If you are a homeowner, one alternative you can look into is utilizing the equity in your home to provide funding for your children’s college education.  Using your home as an asset to execute a cash-out refinance is a forward thinking way of negotiating your present family housing obligations with your children’s future education obligations.


A cash-out refinance is when you borrow money above and beyond what your mortgage balance is now, and that money is yours to do anything you’d like with.  In general terms, you can borrow up to 80% of the value of your home less your first mortgage balance.  If your house appraises at $250,000, 80% of that is $200,000.  If the balance of your existing mortgage is $150,000, you get $50,000 back in cash from your closing and you can earmark this for your children’s education.


      There are several benefits for taking cash out of the equity in your house:


Current mortgage rates are several percent lower than current student loan rates


Primary mortgage interest is tax deductible to you as a homeowner


Repayment terms go up to 30 years for a traditional mortgage

Many people don’t want to extend their mortgage term but the truth is your monthly cash flow is really the most important part of the equation.  If your existing mortgage and housing obligation is tight to begin with and you have some equity in your property, taking cash out on a refinance could put the least amount of strain on your personal budget.