FHA Mortgage Insurance On the Rise
August 27, 2008
More and more borrowers are turning to the Federal Housing Administration for assistance in obtaining a mortgage, thanks in part to the foreclosure prevention program which was just brought into legislation. As FHA takes on more and more of the market share of the housing market, increasing their mortgage insurance premiums would help them to hedge against some potential risk factors. The Federal Housing Administration will increase the cost of its mortgage insurance by 25 basis points to 1.75 percent of the total loan amount. That amounts to a $500 up-front charge on a mortgage of $200,000.
Down Payment Assistance Programs Soon to Be Eliminated
August 11, 2008
Starting October 1, 2008, the newly passed Housing Bill has plans to ban seller-funded downpayment assistance on FHA loans. Nehemiah Corp. of America and AmeriDream, the nonprofits that run the controversial homebuyer assistance programs, are working with House members to restore it. Their supporters in the House may attempt to include a DPA program extension in a continuing funding bill.
These programs include the following:
- Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
- Gift funds for both first time and repeat homebuyers
- Gift funds for both new construction and resale homes
- No repayment of gift money
- No income or asset limits
- No geographical restrictions
To learn more about these programs or to support the “Save DPA Now” please visit their website at www.getdownpayment.com
30-Year Mortgage Rates at Eight-Month High
June 13, 2008
Rates on 30-year mortgages jumped to the highest level in nearly eight months, reflecting increased concerns that the Federal Reserve might be preparing to raise interest rates.
Thirty-year fixed-rate mortgages rose to 6.32 percent this week from 6.09 percent last week, according to Freddie Mac’s national survey. It was the highest level for 30-year mortgages since they averaged 6.33 percent for the week of Oct. 25.
Rates on 15-year fixed-rate mortgages rose to 5.93 percent from 5.65 percent. The five-year adjustable-rate mortgage rose to 5.70 percent from 5.51 percent. The rate on a one-year adjustable-rate mortgage edged up to 5.09 percent from 5.06 percent.
Rates don’t include add-on fees known as points. The fee for 30-year and five-year mortgages was 0.7 point. The fee on 15-year and one-year mortgages was 0.6 point.
A year ago, rates on 30-year mortgages stood at 6.33 percent, 15-year mortgage rates averaged 5.99 percent, five-year adjustable-rate mortgages were at 6.37 percent, and one-year adjustable-rate mortgages were at 5.75 percent.
Associated Press
Visit www.capitalending.com to view today’s current market rates.
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