The Federal Housing Administration (FHA) is giving homeowners and buyers until Oct. 4 to lock in a low monthly insurance premium on FHA loans, according to Gibran Nicholas of the CMPS Institute, which trains and certifies mortgage bankers and brokers.
After that, the monthly insurance premiums on FHA loans will increase by over 63 percent.
A homebuyer purchasing a $200,000 home using a $193,000 FHA mortgage before Oct. 4 would pay an insurance premium of $88.46 per month. If the same homebuyer waits until after, the insurance premium would jump to $148.01.
Although the upfront mortgage insurance premium is going down, "the real impact to the homebuyer is actually a net increase in their out-of-pocket costs because the monthly premium is going up by 63 percent," Nicholas said.
"Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket," he said. "On the other hand, the increase in the monthly premiums will be paid right out of the homebuyer’s pocket with their mortgage payment each month."
Pre-owned Home Sales
US existing home sales dropped sharply in July. The sales of the month is 27.2% lower when compared to June following expiration of the home buyer tax credit. According to the National Association of Realtors figures, it is the lowest in more than 10 years with an annualized rate of 3.83 million.
New Home Sales
The Commerce Department said Wednesday August 25, 2010 that new home sales fell 12.4 percent in July from a month earlier to a seasonally adjusted annual sales pace of 276,600. That was the slowest pace on records dating back to 1963.
July homes sales down, up for year
San Antonio home sellers and real estate agents aren't quite singing the summertime blues, but sales of existing homes slowed considerably in July.
The number of home sales dropped 25 percent in July when compared with the same month in 2009, dipping to 1,491, according to data released Tuesday by the San Antonio Board of Realtors.
The likely culprit of the unseasonable doldrums: the federal government's $8,000 carrot offered to first-time home buyers and $6,500 to some current homeowners, which was available to those who could go under contract by the end of April.
The tax credits boosted the number of home sales in the springtime, but most of those deals had closed by the time July rolled around.
“What we saw in the spring market was a surge in sales for the tax credit,” said Marietta Alba, SABOR chairwoman.
But sales volume is still up 6 percent for the year, with 10,922 sales so far compared with 10,297 by the same time in 2009.
The expiring federal tax credits are also a likely reason the median sales price rose slightly, to $160,800.
Alba said that July saw an unusually high number of sales of homes above $500,000 — a group of buyers unlikely to be swayed by the federal tax credit — and a lower number of sales below the $200,000 mark most popular with first-time buyers.
Earlier in the year, the number of first-time buyers in the market helped push the median price down slightly.
The number of home sales dropped 25 percent in July when compared with the same month in 2009, dipping to 1,491, according to data released Tuesday by the San Antonio Board of Realtors.
The likely culprit of the unseasonable doldrums: the federal government's $8,000 carrot offered to first-time home buyers and $6,500 to some current homeowners, which was available to those who could go under contract by the end of April.
The tax credits boosted the number of home sales in the springtime, but most of those deals had closed by the time July rolled around.
“What we saw in the spring market was a surge in sales for the tax credit,” said Marietta Alba, SABOR chairwoman.
But sales volume is still up 6 percent for the year, with 10,922 sales so far compared with 10,297 by the same time in 2009.
The expiring federal tax credits are also a likely reason the median sales price rose slightly, to $160,800.
Alba said that July saw an unusually high number of sales of homes above $500,000 — a group of buyers unlikely to be swayed by the federal tax credit — and a lower number of sales below the $200,000 mark most popular with first-time buyers.
Earlier in the year, the number of first-time buyers in the market helped push the median price down slightly.
It's a myth ... there is no federal sales tax on home sales.
An Internet rumor continues to spread false information about a supposed tax on home sales. The erroneous e-mail claims that a provision of the healthcare reform bill passed earlier this year will place a tax on "all real estate transactions" in 2013. Not true.
The e-mail includes a guest editorial in a Spokane newspaper with the false claim. It doesn't, however, mention the corrected information sent to the newspaper the next day from the local association of REALTORS®.
To learn more about this myth, read this explanation from FactCheck.org.
The e-mail includes a guest editorial in a Spokane newspaper with the false claim. It doesn't, however, mention the corrected information sent to the newspaper the next day from the local association of REALTORS®.
To learn more about this myth, read this explanation from FactCheck.org.
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