What Do Reduced Rates Mean for You?



There are many great Chandler area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (480) 621-6828 for a FREE home buying or selling consultation to answer any of your real estate questions.  

Welcome back to the Omni Real Estate Report! Today, we have some awesome news for home buyers.

Recently, the FHA decided to lower their mortgage insurance premium! After the market meltdown, the FHA had to increase their mortgage insurance premium to protect against losses because of all the foreclosures taking place. For a while, that rise in insurance premiums made FHA loans a lot less affordable. 

Now, a whole slew of positive economic news - including rising home values, lower unemployment, and a stock market on the rise - has led FHA to lower the premium from 1.35% to .85%! 
What does this mean for you?

On a typical $200,000 loan, this decrease will save new homeowners $1,000 a year on monthly payments! The lower rate will, in effect, make loans more affordable and will allow about 250,000 people nationally to buy their first home over the next few years.

In the Phoenix market, the median home price is right around $212,000, and the FHA loan limit is around $271,000. This means there is a lot of room for buyers to get a really great loan on a really great property! Additionally, at only 3.5% down, you don't need to have deep pockets to get into the home of your dreams.

If you're looking for a more conventional loan that's still affordable, we have more good news. Fannie Mae and Freddie Mac have recently rolled out 3% down programs that mimic the 3.5% down program for FHA. This is as low as conventional loan rates are likely to get!

As you can see, there are a lot of affordable options out there right now. If you're interested in making your move in the Phoenix or Chandler areas, we would love to give you a hand. We can put you in touch with a reputable mortgage professional who can help you decide which program makes the most sense for your specific situation. 

Also, if you have any questions about our market, don't hesitate to give us a call or shoot us an email. We are always here to help you!

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