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Insider Information about a Price Increase

By
Real Estate Agent with Drake Realty, Inc. 304526

How would you respond if you knew well in advance that the price of your favorite cereal would be increasing by over 27%?  Most savvy consumers who could would likely stock up on a few boxes before the expected price increase date, right?  That was called "loading the pantry" during my time with the big  CPG companies.  You see, the retailers knew well in advance that the price would be going up on your favorite items while their customer base learned about it through sticker shock.

Word has come recently of an increase of .25% in the monthly mortgage insurance premium for FHA mortgages on all contracts established after April 18, 2011 (from the current .90% to 1.15%).  Think that amount is too small to be of any real concern?  Consider that the monthly payment could increase...

  • $15.62 on a $75,000 mortgage
  • $20.83 on a $100,000 mortgage
  • $31.25 on a $150,000 mortgage
  • $42.00 on a $200,000 mortgage

As you may see, what seemed to be an incremental increase can and will have a profound impact on debt-to-income ratios and, therefore, your ability to buy that dream home.  The government is also positioning itself to scale back intervention in the secondary mortgage market, an action that could lead to even greater increases in interest rates than we've already seen in recent months.

For those of you who have the means, peace of mind and intention to buy, now clearly is the time to get the process underway.  Call or write today for more information on how to get qualified for a mortgage, the home search process and more.

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
(678) 775-2677

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