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 dont 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. Heres some more reading material on the subject if you are interested in learning more: goo.gl/wshGZV
Posted on: Tue, 03 Dec 2013 15:28:20 +0000
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