I get emails from a LOT of people…just like many of you.  However, I try to take from that rash of emails information that might be important to pass along to others.  This is one of those instances:

Effective for all case numbers assigned on or after April 1, 2013 the monthly mortgage insurance premium on FHA 30 year fixed rate loans increased from a factor of 125 basis points to 135 basis points. On a $100,000 purchase with 3.5% down that’s a monthly increase of $7.91. Case numbers are assigned when a property goes into contract.

 Effective for all case numbers assigned on or after June 3, 2013 on FHA 30 Year fixed rate loans, with less than 10% down payment, the monthly mortgage insurance premium remains in place for the life of theloan. Currently, the monthly insurance premium cancels at 78% loan to value with a minimum of 5 years.

 If you have an FHA buyers this information may encourage them to speed up their decision making. There are options with 3% down conventional loans. However, the rates are affected more dramatically by lower credit scores than FHA.

What does all of this mean?  IF you are THINKING ABOUT BUYING – NOW IS THE TIME (and yes, that means if you have a place to SELL – NOW IS THE TIME.)  Call me if any questions or to allow me to help you in this very busy market.