Rockford Mortgage Rates

There have been many changes since the collapse of the housing industry in 2008. A potential homeowner now faces tighter underwriting guidelines and more necessary documentation when trying to obtain financing. While home values are depressed, which is good for someone purchasing a home, it makes it very hard for sellers to move up to the next home.

The Federal Reserve on April 1st implemented a new Rule that dramatically changes the way loan officers and mortgage brokers are to be compensated on a transaction.  Citing that this change removes the motivation for a loan officer to “steer” a customer into a more costly mortgage loan, the Federal Reserve inadvertently may have caused the cost to obtain mortgage financing to rise.

Effective April 18, 2011, the cost of a new FHA loan will rise. The US Department of Housing and Urban Development (HUD) has announced that all new Case Numbers requested as of April 18th will include an increase of 25 basis points on the monthly mortgage insurance.

In the Midwest when Spring finally arrives, real estate agents get giddy over the possibility of prospective homebuyers. Home purchasing is more or less a seasonal event with the Winter being the slowest period. This year should be no exception. With interest rates at near record lows and home values depressed, the Rockford (Winnebago County) area is prime for homeownership.