March 22nd, 2010 Weekly Mortgage Update from Bob Joyce of Reliant Mortgage
The President’s health care bill passed and it will be interesting to see how the stock and bond markets react this week. Rates are still attractive in the low 5’s even though the fed will finish buying the 1.2 trillion dollars worth of mortgage backs at the end of this month. One reason rates are remaining low is that inflation appears to be in check.
Another change for FHA loans is coming in two weeks – after April 5th the ufmip (up front mortgage insurance premium) will be going up from 1.75% to 2.25%. That’s an extra $1500 cost on a 300K loan amount. This is to ensure the preservation of the FHA program which is in jeopardy due to all the foreclosures.
Have a great week and let me know if my team and I can be of help.
Reliant Mortgage Company, LLC.