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If you wait till Spring...you might have to pay more, Corona CA

If you wait till Spring...you might have to pay more, Corona CA


I am reblogging an article written by Nick Padulla, loan officer from Rockville MD. It's very informative and timely. There are so many buyers who are still on the fence deciding whether this is the right time to purchase. From all the recent activities, all indications lead us to believe that the market is improving and heading NORTH.

Nick explains to us some of the benefits for purchasing NOW instead of waiting till Spring. It definitely is going to be more cost efficient to purchase a home NOW before the FHA fee hike becomes active in April.

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Nick Padulla's blog:

If you are considering buying or selling your home in an area such as the Kentlands in Montgomery County, now is the time to act! As you may have heard there are a large number of governmental reforms coming to the housing and mortgage industries. Most of them still have to be discussed among lawmakers, but the guidance appears that mortgages will get more expensive and have higher qualification standards. This means now is a great time to act on the purchase of a home! This will impact all areas including the Kentlands / Lakelands, Rockville, Bethesda, all of Montgomery County, Maryland, etc.

Housing Tidbit: Median existing home prices in the Washington DC area last month were up 6.2% from a year ago http://bit.ly/fK6AQ2, (great news!) this trend will likely continue and push home prices higher with an active spring market

My Take: Act now if you are a first time homebuyer or are buying a more expensive home. Another 6.2% gain on your less expensive home will cost you more in missed opportunity cost compared to another 6.2% gain on your more expensive home


Housing Tidbit: FHA monthly MIP is slated to increase by .25% effective April 18th, 2011. It is currently .9% on a 30 year mortgage with 3.5% down. On a $300,000 mortgage currently the monthly MI is $217, with the increase it will be $287

My Take: FHA has a tendency to delay these abrupt changes, but FHA is currently used by 30% of home buyers - so this will have a direct impact on the cost of obtaining a mortgage. Note: If you can get to 5% down, my bank has a product without monthly mortgage insurance that can save qualified borrowers money over FHA. Contact me if you would like to hear more.
 fha logo mip increasing


Housing Tidbit: With the government report released last week, http://bit.ly/fEpw7c a number of overhauls to Fannie Mae, Freddie Mac, and FHA are on the table

My Take: These changes are expected to take many years but some could come sooner: including requiring banks to hold more risk on the mortgages they originate, potentially requiring larger down payments, and likely in the short term likely allowing the “High Balance” $729,750 (DC Metro) and $560,000 (Baltimore Metro) loan limits reset back down to $625,500 and $494,500 respectively after September 30th 2011. All changes leading to mortgages being more expensive due to banks holding more risk and / or stricter qualification standards.
 reforming americas housing market


Housing Tidbit: With the improving economy, mortgage rates have generally been on the rise since their all time lows last year.

My Take: When the economy improves, most people don't want to invest in low returning bonds - making mortgages more expensive.

Whether you are in the Kentlands in Montgomery County or are somewhere else in DC, Maryland or Virginia, now is the time to act, get a head-start on the Spring market before everyone else is making offers on the property you are interested in.


As always, our Community Bank is here to support you - with our ability to close loans in 2 weeks, 10% down second trust products, and 5% no monthly mortgage insurance products we are ready to get you to settlement on time with ease. Have a great weekend! Feel free to pass this along to anyone you think may benefit and I am happy to answer any and all questions. 301-585-7283


Nick Pakulla signature

Nick Pakulla / Loan Officer / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283


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Home values in Corona and the Inland Empire are still undervalued. If you are in the market for a principal residence or an investment property, there is no better time than NOW. A third of the purchases for the month of January were obtained thru FHA financing. If this is to continue thru Spring, it is definitely more cost efficient to obtain a loan NOW before the FHA fee hikes become affective in April. Don't sit on the fence anylonger, contact Nick Padulla or your local loan officer today.

Posted Saturday Feb 26