Financial Update by Maurice Soussé

Interest rates are a little lower than last week as the 10 year treasury bond closed down Friday after a scary week in Cyprus. Fortunately a European bailout plan seems to be lurking in the background. This put downward pressure on rates that helped to lower rates about an .125% from last week.

Remember that on April 1st we have some major FHA changes happening. Not only is the MIP going up by .10%, but, mortgage insurance will remain for the entire life of the loan. FHA will also require any loan to be “manually” underwritten on a file in which the FICO score is lower than 620 and a debt to income ratio higher than 43%. Many companies won’t “manually” underwrite files so this will eliminate some FHA lenders from doing loans on scores under 620. The next change is that HUD will now require a minimum down payment of 5% for any loan amount exceeding $625,500. All of these combined changes will help protect FHA financing.

Our quote of the week is from the oh so fun Donald Trump who said “If you’re interested in ‘balancing’ work and pleasure, stop trying to balance them. Instead make your work more pleasurable.”