Tennessee First-time Homebuyers looking for down payment assistance will have higher
The Tennessee Housing and Development Agency (THDA) just annouced that they will be increasing the rates on their programs for First-Time Homebuyers effective next Monday Feb. 14th. On their Great Start Program which provides 4% down payment assistance the rate is increasing from 4.85% to 5.35% that is a full 1/2 percentage point increase in just over one month. The previous rate change on January 5th was an increase from 4.55% to 4.85%.
"Effective February 14, 2011, the interest rate on all Great Rate Program applications will increase to 4.75%, Great Advantage Program interest rate will increase to 5.05%, and Great Start Program interest rate will increase to 5.35%. All loan applications, including electronic submissions, received on or after February 14, 2011 must be submitted at the higher rate."
What does this mean for the First-time homebuyer? It means the same house will cost a little more each month. The principal and interest payment for every $1000 borrowed has increased a little over $3/month. Thus the principal and interest on a $150,000 loan has increased from $792 to $838 a $46/month increase.