|
Housing Tidbit: FHA monthly MIP is slated to increase by .25% effective April 18th, 2011. It is currently .9% on a 30 year mortgage with 3.5% down. On a $300,000 mortgage currently the monthly MI is $217, with the increase it will be $287
My Take: FHA has a tendency to delay these abrupt changes, but FHA is currently used by 30% of home buyers - so this will have a direct impact on the cost of obtaining a mortgage. Note: If you can get to 5% down, my bank has a product without monthly mortgage insurance that can save qualified borrowers money over FHA. Contact me if you would like to hear more.
|
 |
|
Housing Tidbit: With the government report released last week, http://bit.ly/fEpw7c a number of overhauls to Fannie Mae, Freddie Mac, and FHA are on the table
My Take: These changes are expected to take many years but some could come sooner: including requiring banks to hold more risk on the mortgages they originate, potentially requiring larger down payments, and likely in the short term likely allowing the “High Balance” $729,750 (DC Metro) and $560,000 (Baltimore Metro) loan limits reset back down to $625,500 and $494,500 respectively after September 30th 2011. All changes leading to mortgages being more expensive due to banks holding more risk and / or stricter qualification standards.
|
 |
Whether you are in the Kentlands in Montgomery County or are somewhere else in DC, Maryland or Virginia, now is the time to act, get a head-start on the Spring market before everyone else is making offers on the property you are interested in.
As always, our Community Bank is here to support you - with our ability to close loans in 2 weeks, 10% down second trust products, and 5% no monthly mortgage insurance products we are ready to get you to settlement on time with ease. Have a great weekend! Feel free to pass this along to anyone you think may benefit and I am happy to answer any and all questions. 301-585-7283
Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com
Click Here to go to my Bank Website 
Call Me Direct: 301.585.RATE (7283)
Great information. Thanks for sharing. Market is going to be hot this Spring. It is definitely time to act if anyone is thinking of purchasing.
Nick- this is a fine bit of advice for buyers. We've seen a real pent up demand for homes lately due to low inventory in Bethesda/Chevy Chase. Multiple bid situations still exist. For a lot of local buyers the time to act is now.