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Mortgage Insurance is increasing on FHA Insured Loans

By
Real Estate Agent with HomeSmart Elite Group - Palm Springs / La Quinta, CA DRE# 01167143

I would like to share an important change in FHA lending which takes effect on April 18, 2011 when the monthly mortgage insurance premium on FHA insured loans will increase 0.25%.  For example; on a $150,000 purchase price the monthly premium will increase from $108.56 per month to $138.72 per month.

The real estate industry has been greatly affected by how difficult it is for buyers to obtain financing. Home prices appear to have stabilized and consumer confidence is rising steadily. I sense that inventory is low due to the banks releasing their foreclosures portfolios at a slow controlled pace (in an effort to avoid flooding the market and potentially causing a negative impact on the overall economy).

Interest rates recently rose sharply it certainly appears to be an ideal time for buyers who are sitting on the fence to seriously consider buying a home. The opportunity to take advantage of these low home prices and historically low interest rates will surely benefit todays homebuyers with an affordable monthly payment and many tax advantages.

Gregory Manns

Select Realty Services, Inc.

Realtor, e-Pro Certified, GRI & CCIM Candidate

Cell (760) 406-2900

Fax (760) 619-2653

gmanns@earthlink.net

www.GregoryManns.com

www.IndioRealtor.com

www.MyIndioRealtor.com

www.HomeinCoachellaValley.com

Serving the Palm Springs and Greater CA Desert Areas

Posted by

Gregory Manns, Realtor

HomeSmart Professionals

47-060 Washington Street | La Quinta, CA 92253

(760) 406-2900 Mobile | (760) 619-2653 Fax

www.GregoryManns.com

CA BRE #01167143

Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Thanks for the information. Does this only happen on new loans? Inventory in my area is still and it's a buyer's market. With interest rates going up....now is a great time to buy.

Feb 17, 2011 06:05 PM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Thanks for this, Gregory. I want to share this with some new buyers who are busily saving up for the 3% down they need for their FHA loan (to buy my listing in April) and I will need to give them a heads up about this new info.

Feb 17, 2011 07:07 PM
Gregory Manns, Palm Springs Area Realtor
HomeSmart Elite Group - Palm Springs / La Quinta, CA - Indio, CA
Palm Springs Area Realtor with HomeSmart Elite

Hi Debbie, Yes, the mortgage insurance will increase on 4/18/11 on new loans only. It is such a great time to buy you are so right. Wishing you the very best in 2011.

Hi Gayle, Congratulations on your upcoming listing! Thank you for responding to my blog. Greatly Appreciated!

Feb 20, 2011 01:38 PM