So I just disengaged from one of the greatest feelings of panic I've had through this entire process. I go to read CNN Money, as I always do to find out the latest and greatest in the housing markets, including the latest interest rate trends etc. I read an article that states that the FHA premiums are about to go up AGAIN! Not only that, but under the new rules, an FHA mortgagee will be paying the PMI for the LIFE of the loan, no longer able to get out after 5 years.
The Article: http://money.cnn.com/2013/01/31/real_estate/fha-mortgage-premiums/index.html?iid=HP_LN
My heart began to pitter patter and I started thinking about the horrible ramifications that might take place if we failed to lock our loan before the changes were made. I sent an email immediately to our incredible nice loan officer at NVR asking what can be done.
Sure enough, just minutes later, she got back to me to let me know that she already secured an FHA ID number for us, so we do not have to worry about the new rates or rules. Phew!!! Thank goodness she is on top of things.
Just beware to you folks who are just starting the process and going the FHA route. You may want to check with your lender about the implications for you.
I think I need a drink....
Wow, are you serious? PMI for entire life of your loan? That's crazy, I guess you better have 20% down or else your payment is gonna go way up!
ReplyDeleteWhat's going on with the rates?
I got 3.25% a little while ago.
Crisis averted! I'm glad your LO is on it! =)
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ReplyDeleteDWx2, the rates are between 3.5 and 3.6 these days. I'm hoping for one my plunge at least down into the 3.4 range once we get into the locking range, but with the strength of the housing market, I'm not sure if that will happen. Unfortunately, I guess I have to hope for a bit of a downturn in the economy and housing market so that rates can come down. Big picture, though, a 3.6% rate historically is laughably low, so I need to keep that in mind.
ReplyDeleteM, yes. She is awesome! Very nice and, from what I can tell, very honest and upfront as well.
Glad it is going to work for you :)
ReplyDeleteI know the stress with the mortgage rates, I have tried to avoid all news about what rates are doing but today I hear they are rising again. Not cool! We won't be able to lock until the beginning of April, and we are hoping the rates swing back low for us to take advantage of.