Listen up buyers!
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.