Skyrocketing mortgage interest rates lately have pushed the average rate to the highest we have seen in 2013. For the first time in more than a year, we had a .375 percent swing in rates in one week; interest rates have not been this high since May 22, 2012! It is important to remember that everything is relative though, and appreciate the fact that rates are still relatively low at around 3.75 percent.
Current rates for 30-year conventional mortgages are around 3.75 percent, 30-year FHA rates are at 3.5 percent, 15-year conventional mortgages are at 2.875 percent and rates for a 30-year jumbo mortgage are currently at 4.125 percent.
In addition to increasing rates, new regulations for Federal Housing Administration (FHA) loans go into effect Monday, June 3, 2013. Any FHA loans assigned a case number after Monday will be subject to the collection of the mortgage insurance premium (MIP) for the lifetime of the loan. Previously, a buyer was able to drop the mortgage insurance after five years of paying down the balance, but it will now be there no matter the length of time or value of the loan. This will cause FHA mortgages to be more costly to those who plan on being in their home for 10 years or more.
For more information on rising interest rates or questions on federal regulation changes, contact Travis Evans, Branch Manager of Academy Mortgage at 404-713-8662. You can also email Travis at firstname.lastname@example.org.
Equal Housing Lender. (c)2013 Academy Mortgage License #3113. GA Lic. # 20505. This is not a commitment to lend. Academy Mortgage Atlanta: 5565 Glenridge Connector, Suite 400. Atlanta, GA 30342. Georgia Residential Mortgage Licensee.