Important Financing Changes in 2015

Baltimore Real Estate Agent Lee Tessier of Keller Williams American Premier Realty talks home loans and financing updates for home buyer in the Baltimore area.

There are many great Baltimore area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (410) 638-9555 for a FREE home buying or selling consultation to answer any of your real estate questions.

This year we're going to see some significant changes in real estate financing, all of which could impact your buying power. These changes could greatly impact your Baltimore or Harford real estate transaction, so I'd like to share and explain to you what is going on and how these changes may begin to affect you. I've outlined a few below, but always feel free to reach out to me with further questions - these changes can sometimes be complicated. 

• FHA has Reduced their PMI by 0.5% on a Monthly Basis: This means that on a $200K home you could expect to pay about $80 less per month, which increases affordability with interest rates now falling in the low 3% range. However, rates could jump to 5% by the end of the year, which gives buyers another reason to act now instead of later. 
• Grants for First-Time Home Buyers: There are currently a lot more grants available for first-time home buyers. FHA, CDA, FHLB, USDA, and many more are available, but make sure you're using a good lender to get these loans. Be sure to contact us for access to some of our preferred vendors in the Baltimore or Harford area. 
• FHLB is back: Funding begins on January 20th and the income limits will be slightly higher this time. The grant is once again a maximum of $5,000, though $7,500 is available for firefighters, first responders, police officers, teachers and licensed health care workers.
  
• Loan limits for Fannie Mae and FHA have increased: Up to $517,500 from $494,500 in most areas, but some are even higher. That means lower down payments on some higher priced homes, which really helps with affordability.
  
• Fannie Mae has come back out with a 3% down purchase: There are two kinds, one for first time buyers that offers a reduced mortgage insurance premium. Be sure to ask us about the other.

There have been more other important developments in regards to financing, so please be sure to give us a call so you don't end up paying more for your home than you really have to. 

Also, if you have any further questions or would like to know more about how the Baltimore or Harford real estate market is shaping up, be sure to call or email us. We'd be glad to assist you.