The bottom line, what it means is: it will cost more for you to buy a home as we continue forward. Call me and let’s at least start looking!

FYI - As of April 18, 2011 FHA will institute a new Monthly PMI Calculation for all FHA numbers assigned after that date.  The new calculation will increase from .9% to 1.15%.  Example: for a purchase price of $200,000 the monthly mortgage insurance currently would be $143.78.  For all FHA numbers assigned after 4/18 the same $200,000 purchase price will have a monthly mortgage insurance cost of $183.72.  Let me know if you have any questions or concerns.

Other news: Rates are holding steady since they increased into the high 4's and low 5's.  See below. 

Rates for 1-17-2011 

30 Year Fixed Conventional

5.125% - 0 pts 

15 Year Fixed Conventional 

4.375%  - 0 pts 

30 Year FHA

4.875% - 0 pts  

v      All rates based on purchase financing. Call for details on refinances.

v      Conventional rates are based on 30 day locks with mid credit scores > 760. 

v      FHA rates are based on 30 day locks with mid credit scores > 660. 

v      Call for more information for clients with credit scores below the scores listed above.

30 year PHFA (Penna. Housing Finance Agency)

4.375% - 30 year – NEW Construction

5.375% - 30 year - Existing Homes

v      Must be First Time Home Buyer v      Income and Purchase price restrictions (see PHFA Chart)