Mortgage Rates Mixed for Week of February 1
Mortgage rates moved little this week as compared to last week. Average rates for a 30-year fixed-rate mortgage (FRM) loan stayed steady at 5.42%, while rates for a 15-year FRM ticked downward by one basis point, from 4.82% to 4.81%, according to HSH Associates's weekly survey of mortgage lenders. Average interest rates for a 5/1 adjustable-rate mortgage (ARM) loan rose by one basis point to 4.60%.
Home Buyer Tax Credit Program Nearing Finish Line
Last year, Congress extended the popular home buyer tax credit program to include some existing homeowners. Purchase offers must be made by April 30, 2010, and closed by June 30, 2010, which is when the current tax credit program expires. With federal tax credits from $6,500 to $8,000 available to eligible buyers, this program is a great incentive for buyers prepared to take the plunge.
FHA Proposes Stricter Credit Criteria, Raises Mortgage Insurance Premiums
Another development affecting home buyers and homeowners seeking mortgage loans and refinancing involves FHA raising its upfront mortgage insurance premium (UFMIP) from 1.75% of the purchase or refinance mortgage to 2.25%. This rate change becomes effective for FHA case numbers assigned to loans on or after April 5, 2010. FHA has also proposed stricter credit criteria and higher down payments for borrowers with credit scores lower than 580. Although it isn't clear when these changes will become effective, if you're considering an FHA loan and are prepared to buy or refinance now, you may avoid paying extra for mortgage insurance.
Refinancing: Owing Too Much to Qualify
If your home has declined in value since you bought it or last refinanced, you may not qualify for conventional refinance mortgage options. Check into FHA refinancing as it can provide a way to take advantage of current low mortgage rates. Refinancing is also useful for converting from a mortgage with adjustable or unusual terms to an FRM.
Our live database of current mortgage rates can help you find the best rates in your area.
