Change is happening in the mortgage industry right now. Recently, the FHA released a new Mortgagee letter that, according to our friends the financing experts at Legacy Mutual Mortgage's Sigmund Team, contains a few bullet points worth covering.
For new case numbers after opened after April 1, 2013, it the monthly Mortgage insurance will increase by an additional .1% on maximum financing scenarios. In addition annual mortgage insurance premiums (MIP) are now required on all 15 year mortgages regardless of loan to value ratio effective June 3, 2013. But perhaps the biggest, most impacting change is that the monthly MIP will likely extend to the LIFE OF THE LOAN in most cases.
Unless there is another Mortgagee letter change, these new policies will stick. For buyers and sellers, this means the time to act is now if you want to take advantage of current policies before the change takes affect--at this point, waiting could cost tens of thousands of dollars over the life of the loan.
Anytime large scale changes like these come, there is understandable confusion and trepidation. But there are also opportunities. For sellers, buyer circumstances changing means that motivation to close deals before April 1, 2013 will increase significantly. And for buyers, inventory stands to increase as savvy sellers who've been on the fence may be more motivated to ensure their homes sell before the change.
It all boils down to this: Spring 2013 is going to be an exciting time in real estate. Now more than ever, it's important to have a partner you can trust as you navigate the market. Whether you're buying or selling, the Claus Team has the knowledge and skill to help you achieve your real estate goals. Call us TODAY at 210.566.6355 or e-mail firstname.lastname@example.org to schedule a consultation.