Those Who Wait Will Pay Thousands More This Spring
Waiting a few extra days or weeks to
purchase a home this spring could cost buyers thousands of extra
dollars as the office of Housing and Urban Development (HUD) implements
several changes for loans guaranteed by the Federal Housing Authority
(FHA).
Coming just weeks before the April 30 deadline for the Home Buyer Tax
Credit and just days after the March 31 expiration of the Federal
Reserve Board's mortgage backed securities purchase program (which has
kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.
Here are a few reasons why:
On April 5th, the cost of required up-front mortgage insurance for
loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a
borrower purchasing a $200,000 home with a $7,000 down payment, the
up-front mortgage insurance will increase by $965. Up-front mortgage
insurance is typically financed in the final loan amount so the impact
to a monthly payment will be minimal but overall, the increase is still
borne by the borrower both upfront and monthly.
Later this spring, the amount of money that a seller can return to the
buyer from their sale proceeds will be reduced from 6% to 3%. The
reduction in these "seller concessions" can increase the amount of cash
a buyer will be required to pay at closing by $6,000 for a home
purchase of $200,000.
There is only one way to avoid being affected by all of these costly
changes that lie ahead - submit all FHA mortgage applications by the
last week of March.
Don't wait, don't delay, call me and let's find your new home. Mike Cleaver 651 894 4755.
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Begin the search for Your home.
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Here you will find tools and information to help you in the search for your next home, or maybe you are a first time home buyer and this is all new to you.
Either way we are here to guide you and to ensure that your home purchase is a smooth transaction.
We live in Shoreview and we have worked with clients from Cottage Grove to North Branch, our main area is the Twin Cities North Metro.
You can call, text or e-mail, which ever you prefer. If you have a question about buying or selling a home, or about the current market conditions please contact us, we work hard for our clients and also for our potential clients. We are sure that you will want The Cleaver Team working for you.
Call Mike: 651 894 4755, e-mail: realty@mikecleaver.biz or SMS Text: 651 894 4755
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