In case you haven’t heard… FHA loan fees are scheduled to increase… again in 2013!
These changes are projected to be in effect by the early part of 2013, and would raise FHA mortgage insurance rates from 1.25% to 2.05% per year. That percentage increase translates to about an $800 hike in loan costs per year for every $100,000, being financed by an FHA loan, for a home purchase. Additionally, this news also means that, potentially, the loan amount that a home buyer could qualify for would also drop by $10,000 per $100,000 being financed by an FHA mortgage.
The proposed hike in FHA mortgage insurance premiums, for a large number of home buyers, will negatively affect their ‘home purchasing power.’ The price of a home that a buyer could qualify to purchase, when these increased fees are factored in, will most likely be greatly reduced and some home buyers, in certain price ranges, could even be locked out of the market completely.
What does that means to you, if you’re planning to purchase a home with an FHA mortgage? It means that now, rather than later, is the right time to start your search for your new home!
FHA mortgage insurance rate hikes, coupled with lower inventory of homes in certain price ranges, and rebounding home prices in many areas, indicates that people who plan to purchase a home in 2013 should consider doing so in the early part of the year to take full advantage of their ‘home purchasing power.’
If you are planning to sell your home in 2013, you can also apply this news to your plans. It’s a good bet that more buyers will be, most likely, in the market to purchase homes early in the new year which would mean that there will be a larger ‘home buyer pool’ and more interest for your property if it’s on the market in early 2013.
If you’re not sure what property values are for your neighborhood or community, contact a trusted real estate professional for a ‘Market Analysis’ report. This analysis will give you an educated look at whether prices are stabilizing, declining, or rising for your subdivision or community, and based on those facts you can decide, with your agent’s professional guidance, when the time is right for you to put your home on the market for sale.
If you live in the Bradenton, Sarasota, Manatee County, or Sarasota County areas of Florida, or own an investment, vacation, or part-time residence here, The Serena Group would be happy to provide a market report, with no strings and free of charge, for your home… just contact us today to make your request!
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You may also visit our website at: www.Bradenton-Florida-RealEstate.com for a wealth of real estate information including:
mortgage tools and calculators, school ratings, relocation information, new home construction information, area, community videos, home search tools, foreclosures, short sale facts and information, and home buyer and home seller reports and tools.