Buying a home

That home you want to buy? It costs more today than yesterday.

I’ve been saying it for a while … the FHA has been planning to increase their premiums on home buyers, and now it’s happening. It will now cost buyers using FHA financing more money for the same loan that could have been taken a month ago. “A borrower opting for a 30-year, fixed-rate mortgage who puts 5% or more down will now pay an annual insurance premium of 1.3% of their outstanding balance. And someone who puts less than 5% down will pay a premium of 1.35%,” according to CNN Money. This will be particularly felt by first-time buyers who typically find it challenging to come up with the down payment and closing costs. Home prices is the metro DC area are rising too. In some neighborhoods, prices are out-pacing those that were seen at the boom of the market a few years ago. If you’re thinking about buying a home you may want to to get in the market sooner rather than later. Waiting will probably end up costing you more. It already has if you go the FHA route.

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