Deadlines - April 5 for FHA and April 15 for tax credit

Time is running out!  April 5 & April 15 not April 30

April 5  - FHA up-front mortgage insurance increase

After April 5, the FHA up-front mortgage insurance premium will increase by 1/2% from 1.75% to 2.25% resulting in an increase in monthly cost to the borrower of just under $3 per $100,000 purchase price.

This does not impact your "cash to close" because the minimum down payment stays the same at 3.5% of the purchase price and the up-front insurance premium is generally added to the base mortgage (96.5% x purchase price).  Now the mortgage amount with the up-front insurance premium increases by approx. $482/$100,000 purchase price thereby increasing your monthly mortgage payment and corresponding monthly mortgage insurance premium.

Is this a big deal?  Probably not enough of a big deal as some are making it.  Picking the right house, even if it costs a little more by waiting is still the right move. 

April 15 not April 30 - Home buyer's tax credit

Everyone talks about April 30 as the last date to finalize a contract to qualify for the tax credit.  Don't be foolish and go past April 15.  As you get closer to April 30, the seller is going to realize that they may believe they can hold out for a few thousand more because the buyer doesn't want to  loose the credit.  Most of the Realtors I work with are educating their clients to finish negotiating earlier and suggest to the seller that their buyer client will be buying one of two properties - so the seller that locks up the sale at a fair price sooner will make a sale and the greedy seller will sit with their property a little longer.

Just a thought for this cold and windy spring day.