According to Trulia.com March 2010 Price Reduction Report, this month has the lowest percentage of price reductions in the last years for homes that have been reduced.  There were just fewer than 20% of homes that were for sale as of March 1 that had been reduced at least once.

The total amount slashed from home prices dropped to $21.6 billion and the average discounts for price-reduced homes continue to hold at 11% off of the original listing price.  The biggest decline happened in Charlotte, NC; Colorado Springs, CO; Houston, Texas; Raleigh, NC and Jacksonville, FL.  The highest was in Charlotte…

According to FreeRateUpdate.com, the 30 year fixed rate mortgages were available at 4.75% all of last week to consumers paying a standard .07 to 1 point origin.  The 15 year fixed mortgage can be obtained at 4.25 while the 5/1 Arm can be obtained at 3.625.

The FHA loans are still available at the same rates as conforming mortgages.  Although FHA loans are more expensive, the home buyer tax credit is still available until the end of April.  The New guidelines for FHA will increase the MI to 2.25 percent of the amount financed and will start taking effect on the…

FHA will be adding tighter requirements for homeowners who want to qualify for an FHA mortgage.  Borrowers will also have to pay higher fees to get the federally-insured loans.

The tightening of requirements came after an investigation was made on 15 FHA lenders with high incidences of FHA mortgage insurance claim.  Mortgage insurance is paid by borrowers, typically when the down payment is lower than 20%.  Borrowers pay, but the coverage protects lenders with cash benefits if the borrower defaults. When lenders foreclose against homeowners with the coverage, it triggers mortgage insurance benefits for lenders to help pay off the mortgage.

FHA…