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National Flood Insurance Program Expiring Again; St Louis Interest Rates Drop Again

Paramount Mortgage Company - St Louis

The National Flood Insurance Program, known as the NFIP, lapsed March 28 this year and left many pending home sales in limbo.

Congress and President Barack Obama temporarily reinstated the program 18 days later on April 16 as part of a bill that also extended unemployment benefits and Medicare reimbursement for doctors. However, the temporary extension of the NFIP legislation will expire again on May 31.

The stage has now been set for another lapse in funding for the program just weeks before the mandatory June 30 closing deadline for buyers attempting to satisfy the requirements of the federal $8,000 first-time and $6,500 repeat homebuyer tax credits.  The recent 18-day lapse in the NFIP is the third since December, with each one growing in duration. The December interruption lasted nine hours, the February pause lasted two days.

Without another legislative extension of the NFIP by the end of the month, some home buyers may not be able to close on their properties.

The National Association of Realtors estimates a one-day lapse adversely affects 1,400 closings nationwide.

St. Louis Mortgage Interest Rates – May 26, 2010 *

  • 30-year fixed-rate mortgage 4.75% no points
  • 15-year fixed-rate mortgage 4.250% no points
  • 5/1 adjustable rate mortgage 3.500% no points
  • FHA/VA 30-year fixed rate mortgage 4.8750%
  • Jumbo 5/1 ARM 4.000% no points
  • Jumbo 15 year fixed rate mortgage 4.625%

For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

 

 


*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.

This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.

 

 

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