While 2015 has been called the Year of the First-time Homebuyer, affordability and access to homeownership are a concern among many West Virginia homebuyers. Slowly rising mortgage rates, home prices and mortgage insurance premiums may actually be holding buyers back from entering the real estate market.
Enter new, lower Federal Housing Administration (FHA) mortgage insurance premiums. This year, a plan was announced to reduce these annual insurance premiums by 0.5 percentage points.
These FHA mortgage premiums are paid every year, in 12 monthly installments, on top of a homeowners principal, interest and insurance. Whether you have 20 percent equity in your Eastern Panhandle home, these premiums last the entire life of new FHA loans.
These changes will bring current mortgage insurance premiums from 1.35 percent to 0.85 percent for loans with less than a 5 percent down payment. For loans with more than a 5 percent down payment, the new premiums will be altered from 1.30 percent to 0.8 percent.
So how much will these new premiums save the average Eastern Panhandle homebuyer? On a home loan of $175,000, with less than 5 percent down, the lowered premiums will save one about $818 per year and $3,932 over five years. These lowered costs will not only open up access to homeownership for more homebuyers in Shepherdstown, Charles Town, Ranson, Inwood, Falling Waters, Harpers Ferry, Martinsburg and Hedgesville, but also help homeowners save on their monthly insurance expenses.
The Kable Team is here to help you find your dream home and ultimately land the best deal to keep homeowner expenses affordable. There are many programs now in place to help first-time buyers—and homebuyers who have been out of the real estate market for some time—purchase a new home, so do not be discouraged!
Contact us today for more information on how we can help you buy a home in West Virginia's Eastern Panhandle this year.
The Kable Team
Kable Team Realty
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