So many things are changing in the lending world, it is difficult to keep them all straight. This handy table below gives a quick snapshot of what the new change means in terms of a buyers amount out.
For example, $22 a month doesn't sound too bad...but it ads up to $264/yr. In Silicon Valley it's difficult to buy an FHA property for less than $600K.
The new change means after 10/4 the San Jose, Cupertino & Saratoga FHA buyers (OK they are likely townhomes or small SFH) may start paying more than $100/month more and $1200/year more.
The time for FHA Buyers to act is NOW!
Via
Shari Weber (John L Scott):
If you are buying a home or refinancing using an FHA loan, your annual mortgage payment could increase substantially if you don’t act by October 4.
FHA announced changes to both the Up Front and Annual Mortgage Insurance Premiums charged on FHA loans:
1. The Up Front Mortgage Insurance Premium (“UFMIP”) declines from 2.25% to 1.00%.
2. The Annual Mortgage Insurance Premium increases from .55% to .85% or .90%. (To be finalized.)
While the rate on the 1st one was lowered, an increase in the Annual Mortgage Insurance Premium will increase the total annual cost of the loan and may impact the ability for some borrowers to qualify for a loan.
For all loan amounts, the impact of the increase in the Mortgage Insurance Premium is equal to between a .375% to .500% increase in interest rate. The effect on annual payments for loan amounts in all ranges can be seen in the graph above.
It is important to understand that if you are in the market to purchase a home you have until October 4 to identify a property and order a case number before these new rates take effect. If you have questions about how these new rules affect your ability to borrow, I would be happy to put you in touch with a great loan officer who can help.
Aloha & God bless you,
Michelle
Michelle C. Carr-Crowe, DRE #00901962, and the Get RE$ult$ Team (established by the late Judy Carr) are known as the "Lynbrook and Cupertino Schools Experts." Michelle is a creative catalyst for positive change in people's lives.She is a Silicon Valley-based multi-million dollar real estate consultant who works by referral only. Her designations include: Accredited Buyers Representative (ABR), Accredited Luxury Home Specialist (ALHS), Accredited Staging Professional (ASP), Certified Distressed Property Expert (CDPE), Property Marketing Expert (PME), Real Estate CyberSpace Specialist (RECS), and Senior Real Estate Specialist (SRES). In addition, she is an internationally-published freelance writer with over 1,000 traditional articles in print and online, as well as over 51,000 blog posts on Blogger, ActiveRain, MySpace, FaceBook, Realtor.com, Trulia, RealBird and others. She enjoys reading, traveling, animals, dancing, staging and praying. Check out her blog at www.activerain.com/results or visit her online at www.michellejudycarr.com or www.lynbrookhighhomes.com. For RE$ult$ ... Just Call ... (408) 252-8900.
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Good re-blog Michelle... thanks for the info on FHA Rules! Kathy