Perfect time to contact those fence sitting buyers. FHA will see added costs to obtain the loan starting on April 5th. All FHA case numbers assigned after that time will have an Up Front Mortgage Insurance Premium (UFMIP) of 2.25%, up from 1.75%. This increase added to the anticipated rise in interest rates as the Fed pulls out of buying Mortgage Backed Securities (MBS) will make loan more costly. In addition, the tax credit is going away unless the purchase and sale agreement is signed around by April 30.
A good article explaining interest rates and the MBS can be found here:
http://www.mortgagenewsdaily.com/03182010_mbs_purchase_program.asp
Friday, March 19, 2010
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