FHA Rates change

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).

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About nickseevers

A Sacramento, CA Real Estate Agent at Triple Crown Realty who loves college football and politics.
This entry was posted in Buyer, Real Estate, Sacramento. Bookmark the permalink.

2 Responses to FHA Rates change

  1. Pingback: February 2011 FHA rates | Sacramento Real Estate Deals

  2. Pingback: February 2011 FHA rates | House Hunter Sacramento

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