FHA Premiums Rise
It’s a great time to buy a home. Interest rates are low, and so are housing prices. The good deals won’t last forever, though. As more people buy houses, the rates and prices will slowly start to rise once again. Currently, FHA premiums are trending upward for mortgage insurance. Most people who get an FHA loan need this kind of insurance, which is required if a borrower puts less than 20% down on a property he or she is purchasing. Since FHA’s required down payment is only 3.5% in many cases, mortgage insurance (often called PMI) is required.
As of April 1, 2013, the rates for this insurance will rise 0.1%. That isn’t a significant amount, but it does indicate a general trend for the housing market. As the market recovers, prices for everything housing related are going to rise. As they do, some people will be priced out of the market. To avoid that, people who were thinking about getting a house in the future are choosing to buy now. It gives them the chance to own a home or make an investment in real estate during a time when it’s very affordable.
Are you looking for your next dream home or investment property? Call your Danville agent today to get started on your search.