Mortgage rate slide ends

Thursday, Feb. 4
Written 10:15 a.m. EST

RATES RISE A LITTLE: Mortgage rates edged up this week, barely, in Bankrate's weekly survey. It was the first rise of the year.

In this week's mortgage analysis, I write about some deadlines that are approaching -- deadlines that could make a difference of thousands of dollars. Most people think mortgage rates will rise after the Fed stops buying mortgage-backed securities by the end of March; FHA premiums rise in early April, and homebuyers have to have houses under contract by the end of April to claim tax credits.

Mortgage broker Jim Sahnger outlines the potential costs for a homebuyer who blows all three deadlines: "Over 7 years, on a $200,000 loan, a borrower stands to lose the following by waiting. $6,500-8,000 up front from the tax credit. $1,000 if getting an FHA loan with the bump to MIP. As many rate experts, economists and even Fed Bank Presidents have said rates stand to climb 0.75 percent to 1 percent or higher. If we take 1 percent, the increase in payments would be $10,500 over seven years. So, potentially nearly $20,000 by incorrectly timing a purchase."


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