FHA premiums look to be rising…. again!
Affordability takes another hit. This can’t be good for people looking to buy with 3.5% down. If you have thought about buying recently, I highly recommend buying before April 1, 2011. If you were to get in to contract before March 1, we can close and save you a lot of money. From a lender in San Diego, meaning these costs will vary for Sacramento, Placer and El Dorado County, but you get the point:
What does that mean to the average FHA borrower, taking out a $300,000 loan in San Diego County?
- Six months ago, the FHA mortgage insurance premium would have been $125.00.
- As of October 1, 2010(and currently), that FHA monthly premium would be $225.00
- After April 1, 2011, expect that FHA monthly insurance premium to be $287.50.
These costs are not an upfront cost, but a monthly cost you will have to pay to an escrow account. This is not a good thing for buyers looking to buy with FHA (3.5% down payment).