Reduction in FHA insurance makes home buying more affordable.
The President announced on Wednesday that the federal government will reduce PMI insurance premiums on FHA loans with the goal of making it easier for Americans to own a home. This is fantastic news for anyone in the market for real estate since this reduction will save home buyers an average of $900 a year. The lower insurance premium will affect 800,000 home owners immediately, as they will save on their monthly mortgage payments. This change is coming out at a great time considering all of the other positive news in the Real Estate industry the first week of 2015. Unemployment is down, gasoline prices are the lowest in 7 years and spending power is up.
In the Tampa Bay market, SI Real Estate is already noticing the enthusiasm and buzz this news is bringing to the area. Federal Housing Administration loans are largely popular for many home buyers in America. “I want to talk about helping more families afford their piece of the American dream, and that is owning their own home,” Obama said. First time home buyers are a significant building block to a healthy economy. Reducing the cost of buying a home is a surefire way to again boost the economy immediately. Qualifying for an FHA loan will be more attainable since you will have lower monthly payments to qualify for the same loan.
Lowering the cost of monthly mortgage payments also entices the switch from renting to buying. The rental market has become more expensive every year since the recession. “Apartment rents are rising at the highest pace in seven years, which means some of the renters . . . will seriously consider buying,” said Yun of the national real estate group. Yun is expressing what everyone already knows; buying a home is always a better investment than renting. Reducing the cost to own is a great way to spur renters into buying.
Here at SI Real Estate, we utilize our years of experience while working with clients in all possible situations. Our personal relationship with each customer makes us a very valuable asset in the search for a new home. No matter if you are a first time buyer or if you just want to get more information about the current market conditions, SI Real Estate will take the time to go over all the possibilities with you. We will make sure that you are 100 percent satisfied with our services. Real People | Real Results!
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