MORTGAGE RATES RISING: Mortgage rates are controlled by the secondary bond market. Over the past 1-2 weeks we have seen rates increasing due to dropping bond prices. Most indicators see the market as bearish and that this drop and rise in rates could continue.
FHA MORTGAGE INSURANCE INCREASING ON APRIL 18th: On April 18th, FHA will be increasing the monthly mortgage insurance on all of it’s products. In order for a customer to qualify off the old mortgage insurance plan, they must have a new FHA case number pulled by Friday. It usually takes a day to pull, so I would recommend doing this by Thursday. Below is what the changes are:
Loan Period Greater Than 15 Years:
(Current) Loan to value 95% and below: Mortgage insurance of .85%
(New) Loan to value 95% and below: Mortgage insurance of 1.1%
(Current) Loan to value 95.01% and above: Mortgage insurance of .9%
(New) Loan to value 95.01% and above: Mortgage insurance of 1.15%
Loan Period Less Than or Equal to 15 Years:
(Current) Loan to value 90% and below: Mortgage insurance is 0%
(New) Loan to value 90% and below: Mortgage insurance of .25%
(Current) Loan to value 90.01% and above: Mortgage insurance of .25%
(New) Loan to value 90.01% and above: Mortgage insurance of 5%
What this means for consumers: Basically your payment will be going up by 20.84 for every $100,000 of loan amount. This is a big change – I would definitely recommend consumers looking to purchase a home soon to get their FHA case number pulled now. I would also recommend consumers in existing FHA loans looking to streamline refinance to get this pulled now.
