FHA Loans,first time home buyer,Homebuyers will be paying higher fees on mortgages backed by the FHA after the agency announced last week that it is hiking fees in an effort to bolster its reserves and encourage the return of private capital to the housing market.

Since when is increasing fees a 'bolster' to the economy? Personally I feel this is not the time to penalize buyers for trying to buy a home despite the FHA's loses! Here is what is going to happen:

Starting April 1, 2012 the FHA will increase its annual mortgage insurance premium for loans under $625,500,  from 1.15 percent of the loan amount to 1.25 percent. Starting June 1, 2012 larger loan premiums will increase 0.35 percent of a percentage point, bringing the total premium costs up to 1.5 percent of the loan amount. FHA also will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75 percent of the loan amount.

What will that mean for you the buyer?

At $150,000 - the mortgage payment will increase approximately $18 per month. That's an extra $216 per year.

At $200,000 - the mortgage payment will increase approximately $24 per month.  This is an extra $288 per year.

As long as you start the loan process prior to April 1st, you're will be grandfathered so to speak. You do NOT have to close on a house prior to this April 1st deadline.

I think you'd better get going!






Source:  REALTOR® Magazine

 
 

Lyn Sims  ●  Schaumburg IL Area  ●  Northwest Chicago Suburbs  ●  (847)230-7324

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Posted by Lyn Sims - Schaumburg Homes on 03/06/2012 04:50 PM   Comments (4)   fha loans, first time home buyer  
Originally posted at: RealEstateConsumerInfo.com: FHA Increases on the horizon for Buyers!
Short URL: http://actvra.in/wNC
This post has been included in Illinois Real Estate News Cook County, IL Real Estate News Schaumburg, IL Real Estate News
Post is included in group: Local Expert
Post is included in group: Advice for Buyers

4 Comments on FHA Increases on the horizon for Buyers!

MAR
06
2012
1,400,511 Points 54 Featured Posts Outside Blog Called Shot Master

Lyn, I am pusing a few buyers because of this and I usually don't rush anyone!
6:37pm • #1
496,108 Points 149 Featured Posts Outside Blog Hit Router Called Shot Master

Excellent message, Lyn.  Buyers need to lessen their focus on the almighty interest rate right now ... and look at what fees are going to do in the near future.  They are heading up ... and more will surely follow.  These issues are too commonly overlooked by the media ... a real shame.  Your post educates ... and hopefully serves as motivation too.  Good job!

Gene

 
6:42pm • #2
MAR
07
2012
699,772 Points 39 Featured Posts Outside Blog Called Shot Master

I guess no one thought my graphic was funny, eeek.

Bill: It's going to make a big difference to consumers all the way around. The lenders made this mess & now charge more to 'cover their arse's' in case of default.

Where was NAR in all this? No where ......

Gene: Every change just knocks out more buyers. It isn't salacious enough for the media to cover unfortunately!
7:31am • #3
MAR
08
2012
281,719 Points 1 Featured Post

Make the "conventional" loan a little more appealing - I think the whole concept of PMI insurance is wrong - but that's just my opinion....
4:49am • #4

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Lyn Sims - Schaumburg Homes

Schaumburg, IL

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Schaumburg Real Estate - Northwest Suburbs - RE/MAX Suburban

Address: Schaumburg | Hoffman Estates | Elk Grove Village | and Roselle, IL in the Northwest Suburbs of Chicago

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