The author, Senior Editor-at-Large Shawn Tully, acknowledges that demand has been extremely weak in recent years, but notes that a “remarkable shift in home affordability” and the cost of owning vs. renting bode well for housing’s immediate future.

The second measure, the cost of owning compared with renting, should also inspire potential buyers. In 28 out of 54 major markets, it’s now cheaper to pay a mortgage and other major costs than to rent the same house. What’s most compelling is that in all of the distressed markets, owning now wins by a wide margin — a stunning reversal from four years ago. It now costs 34% less than renting in Atlanta. In Miami the average rent is now $1,031 a month, vs. the $856 it costs to carry a ranch house or stucco cottage as an owner.

]]> http://ecoloradoproperties.com/time-to-buy-april-2011/feed/ 0 http://ecoloradoproperties.com/fha-financing-changes-coming-april-2011/ http://ecoloradoproperties.com/fha-financing-changes-coming-april-2011/#comments Wed, 30 Mar 2011 21:29:35 +0000 ecoloradoproperties http://ecoloradoproperties.bluefireblogs.com/?p=412 Read More »]]> First-Time Home Buyers, this is extremely time sensitive information that will have a direct impact on buyers seeking FHA financing after April 18, 2011.  All FHA loans are assigned a case number.  The upcoming changes with FHA deal with the rise in the monthly MIP (Mortgage Insurance Premium).  This change will effect all case numbers ordered on or after April 18, 2011.  The monthly MIP will go from .90 to 1.15, or ¼ percent.  To better understand the implications of this increase let’s look at an example.  For a loan of $150,000 the difference in payment for MIP increases from 112.50 per month to 143.75 per month, or a 31.25 increase. Doesn’t seem like much, but that small increase adds up over the life of the loan.  Hence, if you are considering purchasing a home, and now is as good a time as any considering the still low interest rates and high levels of inventory on the market, with FHA financing the cost of that loan changes significantly in less than 30 days.