New FHA 2/1 Buydown Starting at 1.5% - Loans to $417,000.00

April 12, 2013

Mortgage News You Can Use

Presidential Mortgage just rolled out a super FHA 2/1 buydown starting at 1.5% 1^st year, 2.5% 2^nd year, 3.5% years 3-30.  Buyers qualify at the 3^rd year rate and there are 0 points. It takes 9 years before the current fixed rate of 3.25% beats this deal.  This exciting program softens the increase in monthly MIP which became effective April 1^st.  Loans are available to $417,000.

The Home Affordable Refinance Program (HARP) was extend two years to 2015 so more underwater homeowners can take advantage of reducing their rates and payments.  Loans must be owned by Fannie Mae or Freddie Mac on or before May 2009. The program provides no mortgage insurance and loan to values over 100%. Presidential Mortgage provides HARP financing and I always appreciate refinance referrals.

Next week mortgage applications will require a copy of the filed 2012 1040 federal tax returns or a copy of an IRS extension request.   

Mortgage rates are lower  

The Freddie Mac  reported the average 30 year rate was lower for a second week,  reversing an upward trend. The average rate was 3.43% down from 3.54%.  Mortgage rates we heading higher Monday-Wednesday and then a weaker stock market and flight to quality buying rallied the credit markets Thursday and Friday. Last year at this time the average 30 year rate was 3.88%. The Mortgage Bankers loan application index rose 4.5%.  Average rates in the survey have between  .7-1 discount point fees. 

I am available this weekend for you and your buyers!