Any FHA loans that are locked in after June 3rd 2013 will have mortgage insurance for the life of the loan. Currently, FHA mortgage insurance falls off after 5 years. That will not be the case after June 3rd.
So what does this mean for buyers and sellers?
1. If you are looking to sell May, is going to be a great time to do it because lots of buyers will be scrambling to find a home before the June 3rd deadline so that they don’t have to pay extra mortgage insurance costs. That means more desperate buyers and higher offers on your home! I expect things to cool off after this happens so don’t wait.
2. If you are looking to sell your home and buy another home with an FHA loan then you will want to start now and not waste another second. Having mortgage insurance for the life of your loan if you lived there all 30 years on a 300k home would end up costing you over 40k in extra mortgage insurance.
Call us today! Check out our 47 day home sold guarantee and call us for a free no obligation appointment to show you your options.
Century 21 Everest