I was reading a CAR (California Association of REALTORS) article today and noticed the following talking point that I thought would benefit you to remember.
"Private mortgage insurance: Homeowners who are paying PMI likely will be able to fully deduct the amount, as long as their adjusted gross income is $100,000 or less ($50,000 for married taxpayers filing separately). Borrowers with incomes above $100,000 may qualify for a partial deduction."
If you have not already started, get your lender prequalification done and find a good REALTOR to work with you on your home search. Most Trulia agents would be happy to help or as friends a family for a referral.
Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
You have gotten good answers from other realtors. Yes PMI is going up but it all boils down to one issue you being ready and capable of buying. The rates are historically low and prices are affordable. No one can really tell about the right timing. Now is the cheapest mortgage you are likely to see in your lifetime!!!
To answer your first question, Yes! it's a great time to buy in San Diego. In my many years as a Realtor, prices have never been so affordable. Many homes are selling for nearly 50% less than the top of the market in 2006.
That equals HUGE savings to savvy buyers looking to take advantage of these wonderful prices. Also Interest rates are now at record lows. Along with helping you find the perfect property, I also work with a fantastic lender that would love to help you get the best rate on the right loan for you. Regarding your second question, Yes, it is true that the FHA mortgage insurance are going up on April 1. The annual premium will increase from 1.15% to 1.25% and the up front premium will increase from 1% to 1.75%. Therefore I suggest you contact me as soon as possible so you can lock in before the new rates go into effect April 1.
If you would like help finding a home before the deadline, I would be glad to help you. Please contact me and together we'll find you the perfect property along with getting you touch with a reputable lender that cares.
I hope to hear from you soon,
Yes FHA MI is going up April 1st, but as long as you're under contract and your lender orders a FHA case # before April, you are still eligible for current MI. There are some great opportunities, especially in the distressed market. My reccomendation is to buy the ugliest fixer in the neighborhood you want to live in and then finance the repairs with something like a FHA 203k. I have seen my clients get some great deals with this product on rehabs and if you can build in some equity AND have an affordable payment, it is a great time to buy!
Loan Consultant, imortgage
It is true that the FHA mortgage insurance will go up on April 1. The annual premium will increase from 1.15% to 1.25% and the up front premium will increase from 1% to 1.75%. The up front premium is added to the loan and the annual is included in your monthly payment along with your property taxes and home insurance. I work with a lender who, if we get an offer accepted prior to April 1, can lock in the lower premiums for you.
If you would like help finding a home before the deadline, I would be glad to help you. Please contact me and we will get you pre-approved for a loan and find you a house.
I am never too busy for your referrals
The San DiegoProperty Shop
I don't think anyone answered the 2nd question: YES. PMI is going up:
"The FHA upfront mortgage insurance premium will increase to 1.75% from 1% of the base home loan amount. This will apply regardless of the term or loan-to-value ratio beginning in April."
I definitely think now is a great time to buy, but everyone's situtation is different. Please call me directly and we can go over the different financing programs that are available for you and find you the best home, at the best price and terms. :)
McAllister Homes Real Estate