FHA Homes Loans Cost More Starting April 18

If you’ve been considering buying a home in San Diego, there is a good reason to act soon. The ever-popular FHA home loans which are available for houses and condos in San Diego will soon carry higher fees.  FHA loans are popular because they allow buyers to purchase homes with as little as 3.5% down payment on loan amounts up to $697,500 in San Diego County.  Avoid the higher fees by getting into a contract BEFORE April 18, 2011.
Why the higher fees?  The Federal Housing Administration (FHA) is increasing the annual mortgage insurance premiums (paid monthly) on FHA home loans. The new rates will apply to any new FHA home loans originated after April 17, 2011. In other words, FHA home loans will become more expensive starting on Monday, April 18, 2011. But, practically speaking, since very few mortgage lenders are available to open new FHA loan case assignments on the weekends, you need to be in escrow on your home purchase by April 15, 2011.
How much will you save by buying your San Diego house or condo by April 15?
On a $200k loan amount: $41.66 per mo savings
On a $300k loan amount: $62.50 per mo savings
On a $400k loan amount: $83.33 per mo savings
On a $500k loan amount: $104.17 per mo savings
That means a $400,000 home loan will cost an additional $1,000.00 per year for the life of the loan. That’s $30,000 over 30 years!

Article written by San Diego Real Estate Pros