September 1, 2010–The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium, according to Gibran Nicholas, chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers and brokers. “After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.”

What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.

“In this example, the home buyer would lose $59.55 per month, or $7,146 over a 10-year timeframe,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. 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. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”

Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.

“Home buyers with a short term time horizon may actually benefit from this change because the upfront premium will be reduced to 1% from 2.25%,” Nicholas said. This change will impact over 30% of the home buyers in today’s market who use FHA-insured financing. Home buyers considering an FHA loan should find and contact a CMPS professional in their area to discuss their options and what this means for their situation.

Also, you can follow CMPS Institute on Twitter to stay updated on these and other mortgage and housing industry developments.

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If you are interested in a free buyers guide or searching for your dream home – visit our website at http://www.AtlantaHousingSource.com.

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To search for homes, visit – www.AtlantaHousingSource.com. You can search for free and even get the newest listings that match your criteria via e-mail.

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In this video, Mark Lackey shares with you about down payment assistance and how you may be able to qualify.

Pending Home Sales Sink 2.6 Percent in June
Published: Tuesday, 3 Aug 2010 | 11:05 AM ET

By: Reuters
Contracts for pending sales of previously owned U.S. homes fell to a record low in June as buyers sat on the sidelines, a survey from the National Association of Realtors showed on Tuesday.

The Realtors said its Pending Home Sales Index, based on contracts signed in June, fell to a record low 75.7 from a revised 77.7 in May. Economists polled by Reuters had expected a rise of 0.6 percent.
“We really need to see stronger job creation to have a meaningful recovery in the housing markets,” said NAR chief economist Lawrence Yun, adding “there could be a couple of additional months of slow home-sales activity before picking up later in the year” if the job market improves.
The June decline followed a 30 percent drop in May after a popular tax credit expired at the end of April.
The index was 18.6 percent lower than in June 2009 and fell in three of four regions compared to the prior month.
Contracts rose 3.7 percent in the South, the country’s largest region, but dropped by 0.2 percent in the West, by 12.2 percent in the Northeast and by 9.5 percent in the Midwest.
Copyright 2010 Reuters.

Ridgeland Plantation subdivision, Snellville, Ga. is conveniently located in Gwinnett County near Hwy. 78 and Hwy.124. The neighborhood is minutes away from fine shopping and dining at The Avenue at Webb Ginn.

Ridgeland Plantation is very close to outstanding amenities like the Mall of Georgia, Gwinnett Mall, Discover Mills Mall, Gwinnett Civic Center and Gwinnett Arena. It is very close to the Hwy. 78/Hwy. 124 corridor with all the fine restaurants and all types of shopping. Great location for commute to work being 20 minutes from I-285, I-85 and 30 minutes from I-20. Ridgeland Plantation is one of Snellville most established and desirable neighborhoods.

The outstanding local schools that serve are Pharr Elementary, McConnell Middle and Grayson High School. The school buses make stops throughout the neighborhood.

Homes in Ridgeland Plantation are typically priced from the $300,000 range to $ 500,000, so there really are homes in a choice of price ranges for any Gwinnett home buyer.

CLICK HERE TO VIEW ALL AVAILABLE HOMES IN RIDGELAND PLANTATION

Jefferson Plantation subdivision, Monroe, Ga. is conveniently located in Walton County near Hwy. 78. The neighborhood is minutes away from fine shopping and dining at in Loganville while being a quiet rural neighborhood.

Jefferson Plantation is very close to outstanding amenities in Loganville Arena. It is very close to the Hwy. 78 with all the fine restaurants and all types of shopping. Great location for commute to work being 30 minutes from I-285, and 30 minutes from Athens. Jefferson Plantation is one of Walton’s most established and desirable neighborhoods.

The outstanding local schools that serve are Atha Road Elementary, Youth Middle and Monroe High School. The school buses make stops throughout the neighborhood.

Homes in Jefferson Plantation are typically priced from the $ 175,000 range to $ 260,000 so there really are homes in a choice of price ranges for any Walton home buyer.

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Haynes Preserve subdivision, Grayson, Ga. is conveniently located in Gwinnett County near Hwy. 78 and Hwy.124. The neighborhood is minutes away from fine shopping and dining at The Avenue at Webb  Ginn.

Haynes Preserve is very close to outstanding amenities like the Mall of Ga., Gwinnett Mall, Discover Mills Mall, Gwinnett Civic Center and Gwinnett Arena. It is very close to the Hwy. 78/Hwy.124 corridor with all the fine restaurants and all types of shopping. Great location for commute to work being 20 minutes from I-285, I-85 and 30 minutes from I-20. Haynes Preserve is one of Grayson’s most established and desirable neighborhoods.

The outstanding local schools that serve are Grayson Elementary,  Bay Creek Middle and  Grayson High School. The school buses make stops throughout the neighborhood.

Homes in Haynes Preserve are typically priced from the $ 140,000 to $ 235,000, so there really are homes in a choice of price ranges for any Gwinnett home buyer.

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