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Mortgage Insurance Change (PMI) makes FHA even MORE attractive

Mortgage Insurance Changes
We have seen Private Mortgage Insurance rates climb.  We just received an announcement that the factors for Monthly PMI (the most common form of PMI) have gone up.
Why?  Much like any insurance company, they do not want to pay out... since they have been paying out more in the past year they have raised rates... You see similar issues in states that have had high pay outs on home owners insurance for storm damage, Fl, LA etc.... Even in NJ Home owners insurance is higher near tidal water because of hurricane pay outs in other states.
What does this mean to you? Increased payments of course. here are a few examples for a 200,000 mortgage with 3%, 5%, 10% and 15% down:
3% down (not as common) was $138.33/month NOW $175.00/month 5% down WAS, $131.67 per month. It is NOW $156.67/month 10% down Was $86.67 per month. It is NOW $103.33/month 15% down Was $55.00 per month. It is NOW $63.33/month  As you can see the difference is not as bad as you increase the down payment.  Historically 15% down loans never go bad so there is less risk, while the lower the down payment the higher ... more

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