FHA will be raising the monthly MIP again on April 18th, 2011. Case numbers with ratified contracts before that date will fall under the old MIP. It is moving up .25% to 1.15%. The upfront amount of 1% is staying the same. Your contract ratification date has to be before or on the 17th, however Friday April 15th is the last day to obtain a case number for an FHA loan due to the weekend.
In addition, for many who have been fence sitting and rate watching, we believe the ship has sailed on lower rates. Economic news across the financial news spectrum all indicate that rates will continue to rise for the foreseeable future.
These are two great reasons to move forward if you have immediate home buying plans. As always, consult with your financial advisor before making any decisions.
Charles Kraus, GRI – Associate Broker
Coldwell Banker Residential Brokerage
Annapolis, MD (O): (410) 919-2642