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.
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