FHA…OOC

Listen up buyers!

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The Federal Housing Administration (FHA) is giving you until Monday, October 4 to lock in a low monthly mortgage insurance premium (MIP), because after that day, MIP will increase by over 63%.  Yikes!

What does this mean to you? 

“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.”  Read the rest of the article here.

Interestingly enough, if a buyer plans to sell within three years of settlement and elects to pay the upfront fee himself – as opposed to having the seller pay it – the buyer will actually benefit from waiting until after October 4, since upfront premiums are being reduced from 2.25% to 1%.

So, whether you’re actively house hunting or simply thinking about buying this fall, you should contact your mortgage lender to determine which strategy is better for you.  If you don’t have a lender, send me an email or post a comment below, and I will gladly give you a recommendation for an amazing lender. 

Don’t forget, you can always calculate your monthly payments based on purchase price and down payment amounts with the mortgage calculator on my site.

This entry was posted in Buyers, FHA, Industry News, Interest Rates, Market Conditions, Mortgage Calculator. Bookmark the permalink.

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