Mortgage Costs Are Going Up

When the Fed pulls out of buying Mortgage Backed Securities later this month, analysts are predicting an increase in mortgage interest rates of anywhere from .25 - .50%. On April 5th, any new buyer seeking a FHA mortgage will see closing costs increase also. The Up Front Mortgage Insurance Premium (UFMIP) will go up to 2.25%, up from 1.75%. The first time and move up buyer tax credit goes away on April 30th. If you are planning to purchase a home, now is the time so you can keep your costs down.