FHA will be lowering their mortgage insurance premiums by .50% ( 1.35% down to .85%). This is a pretty significant drop for FHA and will make it more appealing and affordable for homebuyers. To quantify the savings, for a $200,000 mortgage, the savings would be $83 per month ( $1000 per year).
Fannie Mae and Freddie Mac recently announced they will be offering 97% financing again for some borrowers. This is a great option for good credit borrowers who may be short on down payment funds. This option is only available as a 30 Year Fixed for owner occupied, 1 unit properties and at least 1 borrower on the loan must be a 1st time home buyer. In addition, the full 3% down payment can come from gift.
Interest rates have hit their lowest point in the last 18 months with conventional 30 Year Fixed rates in the mid to upper 3’s! FHA 30 Year Fixed rates are down as low 3.25%!Conforming loan limits have increased to $517,500 for many Maryland counties including Baltimore City and County. FHA loan limits are also up to $517,500. While jumbo rates are very competitive these days, the guidelines are more stringent compared to conforming loans.
This is very good news for the Maryland Real Estate Market! For buyers, this means more affordable payments, for sellers who are ready to put their house up for sale, this means a good Spring market.