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  • psst … I’m a Realtor! Thanks for stopping by my website. I would love to help you find your dream home and community in the Hampton Roads or Williamsburg area or to sell your existing home. This website is authored by local resident and REALTOR, John Womeldorf. John is known around town as Mr. Williamsburg, for both his extensive knowledge of Hampton Roads and the historic triangle, and his expertise in the local real estate market. His websites, WilliamsburgsRealEstate.com and Mr Williamsburg.com were created as a resource for folks who are exploring a move to Williamsburg, VA , Hampton Roads VA and the surrounding areas of the Virginia Peninsula. On his website you can search homes for sale , foreclosures, 55+ active adult communities, condos and town homes , land and commercial property for sale in Williamsburg, Yorktown, New Kent, Poquoson, and Gloucester, VA as well as surrounding markets of Carrolton, Chesapeake,Gloucester, Hampton, Isle of Wight, Portsmouth Mathews, Newport News Norfolk, Poquoson, Smithfield, , Suffolk, Surry, Va Beach, Yorktown and York County Virginia You can reach John by email John@MrWilliamsburg.com or phone @ 757-254-813
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      Did you know some candidates for public office used food and alcohol to convince citizens to vote for them? It’s true! While that’s not directly the case today, there are many similarities between voting in the 18th century and voting in the 21st century. You know how voting works now. You drive to your polling station,...Read More »
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      Col. Gary West, a retired Air Force fighter pilot, is a thousand miles into his “Patriot Honor Ride” from Lubec, Maine at the Canada border to mile marker zero in Key West. Trading in his F-16 for a bicycle, he’s making stops in 15 states and Washington, D.C. to raise money and support for Folds...Read More »
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    5524 Pennington Place

    5524 Pennington Place

    5524 Pennington Place

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FHA Loan Fees Increasing

FHA-backed loans, which help make home ownership attainable for many Americans, will get pricier in about a month.

In order to boost their dwindling capital reserves, the Federal Housing Administration announced on Monday that they will adjust their premium structure for FHA-insured mortgage loans.

Starting on April 1st, the upfront insurance premiums will rise from 1 percent to 1.75 percent of the base loan amount. FHA’s annual mortgage premium will also increase, by 0.10 percent for loans under $625,000 and 0.35 percent for amounts above that.

For a $300,000 loan, the new premium “works out to $5,250, up from $3,000, but because homebuyers are allowed to finance the upfront insurance premium into the balance of their mortgages, officials said the sticker shock from the higher fees would be relatively modest, provided that borrowers can qualify for a slightly larger loan.

On a loan amount of $300,000, we are seeing an increased payment of $35.42, which doesn’t sound too bad. However, many home buyers buy homes comparing what their monthly payment will be after they close. This hike in payment is equivalent to borrowing an additional $7000.

Starting next month, it’s as if the home became $7000 more expensive. What is the result? Buyers are going to have to pay more OR they’re going to have to offer less to the seller (to maintain the same mortgage payment they were comfortable with today). A $7000 lower offer is like another 2.5% decline of home prices. Not good for anyone.

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