The $55,000 Home Buying Decision
We have clients that had decided to hold off on purchasing a home here in Eugene till Fall time, but then decided they should buy now.
Here is what motivated them & changed their mind from delaying their purchase:
They are qualified for an FHA loan. Come June 1st FHA is changing the rules with their Mortgage Insurance. Right now, buyers with FHA loans can eliminate their FHA Mortgage insurance once they have 22% equity in their home (or another way to understand this is 78% loan-to-value). Most buyers will acheive this equity sometime between years 5 - 10 of purchasing their home.
Our clients were qualified for a home loan that was just over $200,000. And currently FHA Mortgage Insurance is at 1.35%.. Which makes the monthly mortgage insurance right at $232 in their situation.
So we took the conservative approach & calculated that they would have enough equity in their home in 10 years. This assumes 2.2% appreciation every year and means if they get an FHA loan before FHA changes the mortgage insurance program, they can save 20 years or mortgage insurance payment (with a 30 year loan) at $232 per month. $232 * 20years = $55,707.
In order to avoid this additional long-term cost, buyers need to be in contract and have an FHA case number prior to June 2013. For more information about this & how it may save you money, contact us at 541-554-7918.
Blog Archive2017-02-20 13:43:09
Eugene Housing Market Trends- 02/2017
How to Sell Your Home Fast in Lane County Oregon
Eugene Housing Market Shift?
Eugene Real Estate Market
Hottest Sellers Market in Eugene Oregon- 97404
Springfield Housing Market
Eugene Housing Trends
Real Estate Market Trends- Eugene Oregon
Smart Home Renovations
What Every Home Buyer Needs to Know
Lane County Homes- Sales Report- Jan 2015
Lane County Homes- Sales Report- Dec 2014
FHA Lowers Mortgage Insurance Rate
Lane County home values continue to rise
Seven Landscaping Mistakes
Lane County Homes Sales Report- April 2014
Lane County Short Sales & Bank Owned Homes
Lane County Homes Sales Report- March 2014
7 New Camp Harlow Kid Scholarships
Lane County Homes Sales Report- February 2014
Lane County Homes Sales Report- January 2014
Foreclosure Increase? in Oregon
Home Projects: Cost vs. Value
Lane County Homes Sales Report- December 2013
Relocating to Oregon
Click here to see ALL articles.