560 Free Online Courses From Over 200 Universities***Reposted with permission of freeCodeCamp - in it's entirety with no changesIf you haven’t heard, universities around the world offering their
Changes In FHA Annual Mortgage Insurance Premiums How Does This Affect Me
Changes in FHA Annual Mortgage Insurance Premiums. How does this affect Me!!
JANUARY 14, 2015
Let’s start with some great news! Obama announced last week that HUD will reduce FHA’s Annual MIP (Mortgage Insurance Premium) by .50% for loans with terms greater than 15 years. So in essence,Chandler home buyers will see a rate reduction of ½ percentage point on January 26th, 2015. This is a huge reduction in monthly payments and APR. After the great real estate collapse HUD was seeing a lot of loans being originated via FHA and VA. HUD never intended to take on the majority of loan funding’s, only to help first time buyers and veterans. But because it was harder to qualify for a conventional loan pushing buyers into FHA, HUD was at risk and started increasing their mortgage premiums over the last 5 years. Fast forward 5 years and it’s a better balance of FHA and Conventional loans so HUD is reducing their MIP rates making FHA an affordable option again.
Not to mention interest rates are dropping. The recent 30 year fixed rate for FHA buyers is less than 4%. So if you’re looking to purchase a new home or refinance an existing FHA loan now is a great time to do so.
This is probably why CCN.Money just posted the 10 hottest housing markets for 2015, with Phoenix making an appearance on the list. The combination of lower rates, reduction in MIP and 5+ years since the last real estate collapse, plus the Millennial generation entering the housing market for the first time is driving up demand. Phoenix is predicted to see an 11% increase in sales in 2015 and the Millennial’s have a lot to do with it.
The bad news (really it’s good) is that home prices are pretty good right now and interest rates are dropping again but the combination of the two will drive up home prices. I think Phoenix will see a lot of activity in 2015 so if you’re looking to purchase a new property I would recommend doing it sooner than later. Now is the time to take advantage of the stable housing market and low rates. For more information reach out to Ross Murray a Homebridge Financial at 480-940-1230 . And as always if you need helpbuying or selling a home call Tom or Darby Associate Brokers at Solutions Real Estate at 480-442-5540.
Click here for all the results