Rates Up...FHA Costs More! We knew it couldn’t last forever . . . mortgage rates are going up . . . and a lot faster than most expected! Mortgage applications for both purchasing and refinancing continue to fall as a result. According to Reuters (June 5, 2013), applications dropped 11.5 percent the week of May 27th as interest rates went above 4 percent for the first time in a year. On top of that, Fed Chairman Ben Bernanke indicates the Fed may soon scale back its program of bond purchasing program which was widely credited with keeping interest rates near their all-time lows. (For up-to-date mortgage rates, use this link) In my professional opinion: “If you are thinking of buying, do it now. Rates are not coming down to those record lows of the past year or so.” Some other news affecting FHA mortgages beginning this past Monday: Most buyers will now pay mortgage insurance for the life of their loan! Formerly, owners could drop the extra mortgage insurance payment once their loan-to-value rate dropped to about 78%. But no more . . . UNLESS the buyer can put down more than 10%. If that’s the case, the annual mortgage premium can be eliminated after 11 years. If you’re in Hampton Roads . . . text, call or email me and I can get you in touch with a couple of people I work with closely at Prosperity Mortgage. They can pre-qualify you pretty quickly (for free!) with no obligation or future pestering. Prosperity Mortgage is affiliated with Long & Foster, but there is no “kick-back” or anything like that involved. If you’re out of the area, I suggest you contact a trusted, professional Realtor® who can give you some suggestions on who you can trust. In my opinion, just giving your financial information to someone you find on the net is not appropriate. Good luck . . . let’s talk.
Posted on: Fri, 07 Jun 2013 22:57:51 +0000