No joke, folks. It's coming and it's 28k big. There are other lending options and we should explore them all for you. For now, however, be aware of the deadline for the FHA annual premium changes.
TEXT FROM
VIDEO
Money Saving Minute #029 – FHA
Mortgage Insurance Changes
There are two changes on the
horizon for FHA borrowers. The first went into effect on April 1st.
The annual mortgage insurance premiums on all FHA mortgages went up one tenth of
one percent. This equates to about $8.34 per month per $100,000 borrowed.
The second change will go into
effect on June third of two thousand thirteen. This change is a much more
significant so listen closely. For case numbers requested after June third the
mortgage insurance on all FHA loans with less than 10% equity will continue for
the life of the loan. In plain English, if you are planning on buying a home
with the minimum 3.5% down payment on a thirty year term you will be paying over
$26,000 per $100,000 borrowed more in mortgage insurance over the life of the
loan.
The moral of the story my friends
is if you are holding off on buying that new home in hopes that the price will
come down stop thinking and put in an offer. Waiting until after June third is
going to be extremely costly.
