Archive for the 'advantages to home ownership' category

If you've been on the fence about buying a home, here's some news to consider.

The National Association of REALTORS® has just reported the news that the Federal Housing Authority (FHA) is set to increase fees on FHA loans significantly, effective April 1st.  From the article:

The agency is raising its fees in an effort to try to recoup some of its depleted reserves*, which suffered from the rising number of home owners who defaulted on their mortgages. The agency also says it’s raising fees to try to encourage the return of more private capital to the market. 

FHA loans allow for smaller down payments, as low as 3.5 percent compared to traditional loans, and they often have less stringent credit requirements, which have made them soar in popularity in recent years. (The agency insures loans but doesn’t issue them.) About 40 percent of all new mortgages for home purchases in 2010 were FHA-backed mortgages. 

In particular, FHA will increase two fees that borrowers pay. Starting April 1, it will increase its annual mortgage insurance premium for loans under $625,500,  bringing the total cost from 1.15 percent of the loan amount to 1.25 percent. Starting June 1, larger loan premiums will see an increase of 0.35 percent of a percentage point, bringing the total premium costs up to 1.5 percent of the loan amount, The New York Times reports. 

FHA also announced it will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75 percent of the loan amount.

So what does this mean for a typical borrower?  According to The New York Times:

... a borrower with a 3.5 percent down payment with a mortgage of $193,000 can expect to pay an upfront mortgage premium alone of $3,377, compared to the prior $1,930. That can be rolled into the mortgage.

From the example, it's plain to see that these rate hikes will have an impact on how much home you can afford.  But if you secure a mortgage before April 1st, you can avoid these new fees (and save yourself some money).

In addition, these rate hikes will also apply to anyone with a current FHA loan who refinances.  So if you've been considering refinancing, now would also be a good time, before these rate increases go into effect.

Remember, you can search all MA homes for sale right here from my site.  Registration is free, and you are never obligated to buy a home.  And of course, you can take advantage of my Exclusive Buyer Guarantee and save AT LEAST $10,000 on any home you purchase through me.

I'm proud to present my new listing at 25 Rolling Lane in Wayland.  This is a 3 bedroom Split Level home on a desirable cul de sac.  Features include hardwood floors, 2 full baths, lovely landscaped lot, central A/C, updated heating system and hot water heater, and more.

Many people rave about the school system in Wayland, and this home is served by the Happy Hollow School, which is just down the street.  The brand new high school, which is also just down the street, is scheduled to open in December.

If you'd like to schedule a showing for this house, EMAIL ME.  This home is priced perfectly for first-time homebuyers looking to move into Wayland and take advantage of all that this great town has to offer.

Click to see ALL Wayland MA homes for sale.

Click  to see ALL Wayland MA condos for sale.

And if you're thinking of selling your Wayland MA home, you can request a FREE market analysis.  You could be pleasantly surprised at the current market value of your Wayland MA home.

Remember the $10,000 First-Time Home Buyer Tax Credit?  Sure you do.  In the bad old days of, oh, say, 2009-2010, it was the biggest incentive for many people to get off the fence and enter the wonderful world of home ownership.  I remember the panic many felt in the countdown to the expiration of the tax credit last June, and it wasn't just buyers that were panicking.  There was a tremendous level of fear in the agent community as to what would happen to the real estate market once the tax credit went away.

Personally, I never understood that.  Even at the height of the "tax credit hysteria", I could give my buyer clients at least a half-dozen reasons to buy other than $10,000 in their pocket.  To give one of several examples, for most people in MA, the mortgage interest deduction alone would easily exceed $10,000 per year, and that's year after year, not just one time.

The funny thing is, a few years before the tax credit, I had created a program for my buyer clients to save them at least $10,000 on any home they bought through me.  And I still offer that program today.  In fact, you can find out about it HERE.

So, if you are looking to buy a home in MA, contact me today.  Or, if you know somebody else who is, tell them to get in touch with me.  There's no obligation, and you'll not only hire an experienced Buyer's Agent, and get first-class service (at no cost to you - my services are paid by the seller from the proceeds of the sale), you'll even save a few bucks too.

The government first-time homebuyer tax credit may be history, but my buyer clients are still saving big money today.  And unlike the government tax credit, you don't have to be a first-time homebuyer.  So give me a call, and let's find you that dream home.

Here's an interesting piece from The Wall Street Journal on why despite the doom and gloom real estate talk in much of the media, it's a really good time to buy a home:

Why It's Time To Buy

Read it and let me know what you think.