Posted by: Wendy Harpp | March 20, 2012

mortgage rates on the rise

As we all know, with all good things comes the not so good….. the economy is improving, housing markets are showing signs of stabilization and some markets showing nice increases in sales. So what happens next is that the mortgage rates increase with the positive news! Not a big surprise since this is a pattern that we are used to.

Rates are trending between 4.125% and 4.375% depending on whether you are looking at an FHA or Conventional Loan. Rates are still great, but you need to be aware that they are on the raise.

The other really big change that is coming is that FHA is making loan requirement changes effective  April 1st, 2012.  There will be changes to the FHA Loan requirements . This may effect you even if you already have a pre approval. Here’s the skinny on the new changes coming-Customers who have an aggregate total of $1000 in collections or more MUST pay off those collections OR have a 3 month history of making payment arrangements. This includes medical collections. Many people do not realize how often this affects our clients in that 640 to 700 credit score range.

If you are in the process of buying and have that preapproval, you may need to double check your score as this may effect your current approval.


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