Corey Scott at Cumberland County Mortgage passed on some good news regarding FHA loans this morning. It gives a little more buying power to anyone using this loan product which is a great thing since mortgage rates seem to be on the rise over last year.
Have a great January, Maine Winter is here!
Just wanted to let you know that FHA announced about an hour ago that they are lowering the annual mortgage insurance premium (MIP) effective 1/27/17 for all loans by 25 basis points.
What does this mean for your clients? This is going to lower the overall monthly mortgage payment that they would have to pay and either save them a few dollars per month or allow them to push their budget a little higher.
FHA has had four years in a row of super financials after getting crushed in the mortgage crisis, and are finally passing on some of the savings to consumers!
Here’s a scenario assuming a $150k purchase with 3.5% down (typical standard FHA loan):
current monthly mortgage insurance premium: $102.53/month
new monthly mortgage insurance premium: $72.38/month
In this scenario, they are saving about $30/month or $360/year.
On a $250k purchase, here are the numbers:
current monthly mortgage insurance premium: $170.89/month
new monthly mortgage insurance premium: $120.63/month
This is over $600/year in savings!
Overall – some very good news – please let us know if you have any questions or if there is anything we can do to help!
Over the last half decade or so, home buyers have been able to take their time in finding and making offers during the buying process.
But things have changed.
Spring of 2016 is a full blown sellers market. Limited inventory of homes for sale, combined with still low mortgage interest rates and a mild winter started the season off early and with a bang. Southern Maine has exploded into a sellers market with many homes coming on market and going under contract within days and sometimes within hours or even before they even hit the statewide MLS listings through real estate company networks. Being a part of the state’s largest real estate company does have it’s benefit in this regard as I see this happening more and more as Realtors within our company rely on our internal communications systems to get homes sold quicker.
We are seeing more multi-offer, and above list price offers due to the extremely competitive nature of todays market, so if you are thinking about selling your home, now is the time to get it listed. The buyers are all lined up and waiting to see yours.
Call me at 207-741-2006 to see what your home is worth.
Just in from Corey Scott at Cumberland County Mortgage.
Conventional 20% down 30 year – 4.125%, 4.216% APR
Conventional 20% down 15 year – 3.5%, 3.656% APR
Conventional 5% down NO PMI 30 year- 4.5%, 4.625% APR
FHA 30 year – 3.75%, 4.922% APR
VA 30 year – 3.75%, 3.984% APR
RD 30 year – 3.75%, 4.668% APR
Cumberland County Mortgage
NMLS # 369334