On January 20, 2010 the cost of a government-guaranteed mortgage just got more expensive for U.S. Homebuyers as Federal Housing Administration announced increases in insurance rates (effective 4/5/2010) and tightened credit rules. The main reason is to fight the increasing rates of foreclosures with FHA Loans and to shore up FHA reserves.
If you are purchasing a home the tax credit Expires on 4/30/2010. If you are a First time homebuyer you can get the $8,000 Tax credit to cover your closing costs. If you are an existing owner you can get a $6,500 tax credit for covering your closing costs.
Rates are at their lowest in several months but once the Fed stops buying Mortgage Backed Securities rates will begin to climb. When do the plan to stop this? You guessed it the end of the first quarter.
What are you to do? The next 60-days will be critical. If you are even thinking of buying or refinancing now is truly the to take action or you may find the market decides for you. If you are considering either a refinance in the Conroe, Lake Conroe, Woodlands or Huntsville, Texas areas I’d be happy to evaluate your situation to see if it is prudent for you to take action now.
If you would like to read my full analysis on how it will affect the Conroe, Woodlands and Huntsville markets it can be located here. If you have any questions or would like me to meet with you for a consultation feel free to contact our office at our contact page
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