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Thursday, March 3, 2011
1st Timers...Buy Before FHA rates are up!!
Yes!!! Another message on BUYING NOW!!!
Personally, I am surprised so many buyers are on the sidelines...and I do mean BUYERS that need to BUY!!
Did you know you may be among 300,000 people that graduated, got divorced, add a family member that are projected to be the "pent up market".
Economists have been stymied by the lack of recovery in the housing market with the pressures present from those noted above that have had a life change event and the general population growth that has occured since 2007(both immigration and births) coupled with the overall increased aging of the American population.
So if great rates under 5% and bargain priced homes has kept you on the sidelines, perhaps new FHA regulations will inspire you. In June, FHA mortgages will have a higher monthly MI(mortgage insurance premium) which will result in higher mortgage payments for home owners.
For instance, if you purchase a home resulting in a $200,000, your PMI will go from a present $92/mth to $142/mth: $50 increase.
This $50/month equates to $600/year and $6000 over 10 years
Thus if you purchase a home with an FHA Loan and had the appraisal ordered prior to June 1st, you could either save the money or purchase a home up to $210,000 for a similar payment.