Mortgage Rates Not Going Up Nearly As Much As National Flood Insurance Rates

Mortgage rate increases are always well publicized and create a lot of anxiety for home buyers, but they may not have nearly the effect as current legislation that is about to go into effect.  Even though the legislation, the  Biggert-Waters Flood Insurance Reform Act, was passed in July of 2012, it just went into effect on October 1st.  It is only now being felt though because premium rates don't change until annual renewal notices arrive.  Many homeowners around the country are seeing astronomical increases in flood insurance rates that are no longer subsidized - sometimes 500% or even 600% increases.  For someone buying a home, the flood insurance may now be the deal killer.  The increases have been so devastating that some states have decided to sue to stop the rate hikes.  Bills that have attempted to delay the rate hikes have also stalled.  So if you have a house anywhere near a creek, river, or other body of water, or in an area close to or below sea level - definitely double check that things will still work out.   

 

 

 

Remember, if you want to know the benefits of locking your rate today versus floating, simply give us a call at 3134-744-7806 (www.CallTheMoneyMan.com) who has access to real time Wall St. data and instant market alerts with breaking news.