Office of the Assistant Secretary for Housing-Federal Housing Commissioner; Interest Rate for the Section 235(r) Mortgage Insurance Program

Resumo

This notice announces a change in the maximum interest rate for mortgages to be insured under section 235(r) of the National Housing Act. The section 235(r) maximum interest rate is to be determined by the Secretary of HUD and published in the Federal Register. Mortgage market conditions now dictate that the Secretary decrease the section 235(r) maximum rate from 8.50 percent to 8.00 percent. There is no change being made in the maximum margin of additional percentage points that may be added to the maximum rate if the established conditions are met. Therefore, the maximum for the premium section 235(r) interest rate will be 9.50 percent (8.00 percent for the rate of interest and 1.50 percent for the margin of additional percentage points).