Earlier this year, the FHA increased the upfront mortgage insurance premium from 1.75% of the loan value to 2.25%. Now the FHA has decided to reduce the upfront mortgage insurance premium from 2.25% to 1% and increase the annual premium from 0.55% to 0.9% on loan to value (LTV) ratios greater than 95%.
What does all this jockeying around of rate structures mean to Spring Texas home buyers?
Short answer … your monthly payment will increase. If you already have an FHA loan these changes will not impact you as your monthly payments will remain the same. Only FHA loans originated October 4th, 2010 or later will be impacted.
How much will the FHA changes increase your monthly payment?
For illustrative purposes, I have used a sales price of $160,000 which will get you a nice house in Spring Texas. The maximum allowable you can borrow for an FHA loan is 96.5% of the sales price. You can roll in the upfront mortgage insurance premium and with today’s low interest rates it makes financial sense to do so.
On a monthly basis an increase of 34 dollars doesn’t sound like a lot. But on an annual basis the increase is $408. Now, we are starting to talk about real money.
If you are thinking about buying a Spring Texas home but haven’t gotten serious about it yet, act now to avoid an increase in your monthly payment.
Jill was phenomenal during every step of selling my father's home. This process was extremely difficult for me, as... read moreJill was phenomenal during every step of selling my father's home. This process was extremely difficult for me, as my father passed away last year. Jill listened to EVERY story I had, and there were a lot of them! She allowed me to share the memories of the house, which helped me prepare to let it go.
She is very knowledgeable in what to and what not to do in regards to getting the home ready to sell, what to tackle during the negotiation process and she made the closing extremely convenient. She was thoughtful enough to place the "sold" sign on the property a week in advance, to allow me time to process it all.
Paying constant attention to what is happening around your listing is one of JIll's many strengths. Her goal is to get you the most money for your property, and she has different strategies to that end result.
I not only gained a new realtor, but in JIll, I also gained a friend! I will be forever grateful for her through this tough process and I know my Dad would have loved her! "Thanks," will never be enough! read less