FHA Policy Changes Will It Affect You
Posted by Barry Lynn Miller on Tuesday, August 10th, 2010 at 2:36pm.Our topic today is how the passage of both Senate Bills HR 5872 and HR 5981 will affect your payment will you buy your next home after September 7th 2010. While some groups applaud this new bill like the MBA (see their reaction) there are still some that feel this new Senate bill should be considered nothing more that a Home Buyer Tax.
Frank Garay and Brian Stevens from "Think Big Work Small" has an interesting take on the new bill and it gives one like myself an Alabama Realtor something to consider and this is information that I especially want to pass on to my clients. I spent over 12 years in the mortgage industry and I feel it's my duty to make sure my clients(buyers) know what's going on in the Mortgage Market.
Watch this very informative video about the new FHA changes from Frank Garay and Brian Stevens VIDEO
Basically as you saw in the video- these two Senate bill which take affect on September 7th. 2010 allows FHA Commissioner David H Stevens to one reduce the upfront MI to 1% but raise the monthly MI to .85-.90. This is a done deal so to say if you are buying a home and your lender orders the FHA case number after September 7th you will fall under this new plan. Take a look at the break down below to see how it will affect your loan payment.
NOTE: You can avoid this payment increase if your FHA case number is pulled/ordered before 9-7-2010
These two Senate Bills also give the FHA commissioner the ability to raise the monthly MI to as much as 1.55% if he so chooses with out any questions or input from the Senate it is at David H Stevens sole discretion to raise it or not. That is a lot of power for one unelected person to have on the Stability of the U.S. Economy.
Based on a $200,000 Loan at a 5% rate your payment will be affected as followed.
|
Today $204,000 $1,098 $94 $1,192 |
Sept. 7th $202,000 $1,083 $152 $1235 |
Future $202,000 $1,083 $261 $1,344 |
- LA P/I MMI Total |
This is a total increase of .33% after Sept. 7th 2010 and it could go as high as 1.125% increase depending on the mood of David H. Stevens.
"If need to raise money to keep the doors open so be it we understand but don't tell us your going to save us money when it's simply not the case. Listen you need to raise money to fund your other indevers" and so one "That's fine lets just call it what it is a home buyer tax a tax that furthers HUDS agenda" ˜Brian Stevens think big work small
In closing the point of this post is that if you are planning to purchase a home it might be in your best interest to conact me this week so that we can get your FHA case # ordered before the Sept. 7th deadline and you will save a lot of money in the long run.
Thank You
Barry Lynn Miller
P.S. Thank you Frank and Brian for your insight
Sincerly Yours
Keller Williams Trussville
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