Affordable Homeownership Just Got Easier Thanks to FHA's Recent Changes
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Basis Points
Hey there, dear reader! So, Bell Bank Mortgage and The Hoeft Team have some exciting news to share. Are you tired of those pesky Annual Mortgage Insurance Premiums that are added onto your mortgage payments? Well, the Federal Housing Administration (FHA) has decided to reduce those premiums by 30 Basis Points to Support Affordable Homeownership! That's right, you heard it here first.
Now, you may be wondering, "What's a Basis Point?" Don't worry, it's just a fancy way of saying 0.01%, which may not sound like a lot, but it can add up over time. And boy, will this change be helpful! It will benefit around 850,000 borrowers over the next year, saving them a whopping $678 million in the first year of their FHA-insured mortgage.
But that's not all, folks! For the average borrower purchasing a one-unit single family home with a down payment of 3.5 percent and a mortgage amount of $467,700 (which happens to be the national median home price as of December 2022), this FHA's annual MIP reduction will save them more than $1,400 in the first year of their mortgage. That's a lot of money that can be put to better use, like fixing up your new home or taking a much-needed vacation.
If you're in the market for a new home or you're just interested in saving some extra cash, this is definitely something you should be paying attention to. Make sure to use the #FHAmortgage and #savemoney hashtags when you share the news with your friends and family. Happy house hunting, everyone!
Want a home?
Hey, hey, hey! If you're thinking about saving for a home, no matter your age, there are three things you need to do to move in the right direction:
Step 1: Set a savings goal. This is the first and most important step to becoming a homeowner. You need to figure out how much you'll need to save for a down payment, closing costs, and other expenses. A good rule of thumb is to save at least 20% of the home's value for the down payment, but this can vary depending on your financial situation and the type of loan you're applying for.
Step 2: Create a budget. This is where the rubber hits the road, folks. You need to figure out how much you're earning, how much you're spending, and where you can cut back to save more money. Look for ways to reduce your expenses, such as cutting back on dining out, buying generic brands, and canceling subscriptions you don't use.
Step 3: Start saving and investing. Once you've set your savings goal and created a budget, it's time to start putting your plan into action. Look for ways to save and invest your money, such as opening a high-yield savings account, investing in stocks or mutual funds, or contributing to a retirement account. Every little bit helps, so start small and work your way up.
Remember, becoming a homeowner is a big step, and it takes time, dedication, and a lot of hard work. But with these three steps, you'll be well on your way to achieving your dream of owning a home. Good luck, and happy saving!
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