FHA is giving homeowners and buyers until October 4th, 2010 to lock in a low monthly mortgage insurance premium on new home loans to be financed by FHA.
After October 4th, the monthly mortgage insurance premiums will increase by nearly 65%.
Mortgage Insurance is a loan requirement of all FHA home loan borrowers.
This increase will make a significant difference in a borrower's monthly home loan payments. Currently, a buyer with a $200,000 loan pays less than $90.00 a month for the insurance. After October 4th, a new buyer of an FHA mortgaged home will pay just shy of $150.00 for the same coverage.
What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.
If you are planning to buy a home and FHA will be your lender of choice, it seems it would be wise to take immediate steps to apply for a loan through one of the many mortgage lenders or mortgage brokers. You can do that even before you find the home you want to buy.
After all, in the case of the $200,000 home purchase example here, rather than having to pay the additional $60 a month for insurance, you can use that same $60.00 to apply to your house payment. That would mean your home would be be paid off quicker.
But that savings can also give you additional latitude to pay for decorating and furnishing your new home.
If you need some choices of lenders our clients have reported they've enjoyed working with, email or call, and we'll be glad to supply you with the list.
BILL CHERRY, REALTORS
DALLAS - PARK CITIES
Our 45th Year
214 503-8563
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