Archive for the 'buyer satisfaction' category
FHA Mortgage Fees To Rise Very Soon
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.
RE/MAX Wins JD Power Awards For Both Buyers And Sellers
In big news for the RE/MAX brand, RE/MAX has won the JD Power Awards in the 2011 Home Buyer/Seller Study. In fact, "RE/MAX Ranks Highest in Customer Satisfaction among Both Home Buyers and Home Sellers". Click the following links to learn more:
You can also read the Press Release HERE.
RE/MAX sells more real estate than any other real estate company. RE/MAX agents average more experience than agents in other companies, and sell more homes on average than agents in other companies. And now consumers have lent their voice and ranked RE/MAX agents tops in quality.
