The Ole South Blog

The Ole South Blog: A great time to get off of the fence!

Categories: Interest Rates and Financial Information, Time to Buy | Posted: March 7, 2012

Everyone has been saying it will happen.  And it is true. 

The cost of owning a home will one day go up.  For now, that day is April 9, 2012, when Federal Mortgage Insurance Premiums will increase on all FHA loans.

Mortgage Insurance Premiums on FHA Loans will increase on all loan files submitted on or after April 9, 2012.

This does not signify the end of the world.  But is does present an opportunity to save money on a monthly mortgage payment.  To take advantage of the savings, you need to act quickly.  You need to get off of the fence!

 

After April 9, 2012, those still sitting on the fence will pay more each month when they do decidee to purchase a home.

 

Just how much an increase are we talking about?

Without reciting all of the formulas compliled by the folks with beards, it all boils down to an approximate increase of 27 cents per thousand dollars in purchase price on an FHA loan.  In other words, a mortgage payment on a $150,000 home will increase approximately $40 per month.

You can avoid the increase if you act quickly!

Simply get off the fence and find the new home that meets your needs!  Get under contract and have your loan submitted before the April 9th deadline.  Once FHA assigns your loan a “case number” or file number, you will be charged the current insurance premium amounts.  You DO NOT have to close the transaction before the April deadline!

But I haven’t saved up enough for a down-payment yet…..

FHA loans do require a 3.5% down payment AT CLOSING, but there are programs that will pay your downpayment up to $11,000 on a $275,000 home!   A minimal deposit will secure your new home with Ole South, and we have new homes all over Middle Tennessee to choose from.

Why not start with a visit to our website, www.OleSouth.com.  See first hand why thousands of Tennesseans are proud to say:

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