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There have been some big changes in the financing world that will definitely affect you if you’re buying or selling a home in San Diego. The main point here is that affordability is increasing, which is great for everyone.
The big news is that Fannie Mae and Freddie Mac have rolled out a great new product that only requires a 3% down payment. This is fantastic news, and not only for first-time home buyers. This development will also affect private mortgage insurance (PMI). Whenever you’re not putting 20% down on a home, you will be required to pay PMI, which protects the lender from you defaulting on the home loan.
The point is that the amount of PMI that is charged monthly has changed substantially from 1.35% to just .85% per month. This could allow you to save a few hundred dollars per month.
If you currently have an FHA loan, you may want to contact your lender in San Diego and speak about refinancing. If you need a good lender, get in touch with me and I can point you in the right direction.