Affordability snapshot

We got a great surprise from FHA this week: They’re lowering mortgage insurance premiums! Good news for buyers and refinancers alike.

Since interest rates have moved over the last quarter, it’s time for the briefest look at what affordability feels like right now in the 93561. These figures are rough estimates for the “most perfect” of buyers, and lots of things can affect who qualifies for similar terms and who doesn’t. At the very least, it gives us the flavor of what’s happening now.

The reduction in FHA mortgage insurance means that for a house costing $250,000, monthly payments just dropped by about $50. With the new premiums, expect to spend about $1608 per month to cover the note, taxes and insurance, assuming maximum financing using an FHA loan.

For the same house, a USDA buyer might spend $1630 per month. A first-time VA buyer might spend $1516 per month. A conventional buyer putting 5% down might spend $1572 per month.

Realtor partners are expressing a shortage of listings at the “low end” of the market. If you’re thinking about buying a home, why not get in the game now and see how you qualify in today’s environment. Your local mortgage advisor can help you see what is possible.

Tammy Engel is your local Mortgage Advisor and has been certified by USA Cares as Military Housing Specialist. Contact her at 661/822-7325 for help with purchase, refinance, and reverse mortgage.