GREAT NEWS FOR FHA BUYERS:
Today at 10:30 a.m. President Obama will hold a Housing News Conference. At this time President Obama will announce a reduction in the annual FHA Premium (monthly) from 1.35% to .85%....a .50% reduction. The annual FHA Premium is the monthly Mortgage Insurance Premium that is added to the Borrowers monthly mortgage payment. No date have been given on when the NEW premium will go into effect. This is great news for you and your Buyers. Here is an example of the savings on a $100,000 loan:
NEW .85% premium Present 1.35% premium
Loan Amount: $100,000 $100,000
Monthly MIP: $112.50 $70.83
This means $41.67 more for a home instead of wasted insurance premiums. Either by buying more house or better yet use these savings to apply to your new payment. You would be surprised what an extra $41.67 a month applied to principal will do for a mortgage loan as far as paying it off much quicker and saving thousands of dollars over 30 years. Imagine how fast your loan would be paid off on a $200,000 loan amount with $83.34 per month being applied to the principal. It will save you many many years off the term of the mortgage and thousands in paid interest. Call me for details.