Please don’t be surprised. You have heard all the news that “Home Affordability is at a peak.” If you still don’t believe it, keep waiting…… and pay more as a result.
Those that have aspirations to own their first home, change their lifestyle with another home, or purchase a vacation/future retirement home have a great opportunity RIGHT NOW to get just a bit more for quite a bit less!
Here is one increase that is definite. On FHA loans, MMIP (Monthly Mortgage Insurance Premiums) will increase by .25% on new loan files initiated after April 18, 2011. An active loan file is considered to be one that has a “FHA case number” assigned to it. If your new loan file has a case number before April 18, you are fine. If it doesn’t, you will pay more.
How much more? It depends on the home you buy. For example, if you purchase a $165,000 home and do not have a “case number” before April 18th, your payment will be $34 more each month after the increase. That is not the end of the world, but it is $34 each month, and you must qualify for that additional amount too!
If you contract to purchase now, and begin the loan process, you can purchase approximately $5000 more home than you will be able to if you wait. And THAT is assuming that interest rates remain the same. Bets anyone?
Here is the full scoop:
Keep in mind that you do not have to actually close on your new home by April 18th to take advantage of the lower premiums. All you need is an accepted contract and a loan in process. Consult a mortgage professional for more information. If you don’t have one in mind, give Chris Meagher at Ole South Financial a call, 615.898.7152. Take advantage of the “peak affordability” today!
In the meantime, visit www.OleSouth.com. We define “affordability” in new homes all over Middle Tennessee.
Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019 direct 615.593.6340. Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee