Ar_home_b_search
 

fha mortgagee letter pertaining to the FHA monthly mortgage insurance changes 

FHA first shared these changes on August 4th, after it had been approved by Congress and then the President signed off on it on August 11th. FHA has finally come out with the mortgagee letter, ML 2010-28, which puts it officially in writing now.

This mortgagee letter is effective on FHA loans in which the case number is assigned on or after October 4th, 2010. This policy will increase the monthly mortgage insurance and decrease the mortgage insurance premiums for purchase money and refinance transactions, to include FHA streamline refinances.

 

 

 

So what are the major FHA changes regarding mortgagee letter 2010-28? - For terms greater than 15 years -

  • LTV's <= 95% will increase the monthly fee to 85 bps  >> Old monthly fee was .50 bps
  • LTV's >   95% will increase the monthly fee to 90 bps  >> Old monthly fee was .55 bps 

 

And lastly, it will reduce the Upfront Mortgage Insurance Premium, UFMIP, from 225 basis points to 100 basis points.

 

 

How will this affect new homebuyers?

3 quick examples (these examples are putting the minimum down payment of 3.5%)

  • On a $275,000 mortgage – the change in payment would be about $70 higher a month
  • On a $200,000 mortgage – the change in payment would be about $45 higher a month
  • On a $125,000 mortgage – the change in payment would be about $27 higher a month

 

Buyers Beware - If you have your eye set on a specific home, or are negotiating on a property, or are very serious about buying soon, you will have 31 days to make a mortgage application before these new changes take place.

 

 

FYI in regards to Charlie Ragonesi's  comment, #4 - I still don't think that this will move buyers from FHA loans to conventional loanss.  Here is my reason why... please read : FHA loans vs conventional loans  - The buyer's buying power will only decrease by about $10,000 or so. 

 

 

These 2 posts I wrote previously below go into more details about the changes and showing more detailed figures.

 

 

 

 

_____________________________________________________________________________________________________

 

follow Jeff Belonger on Twitter               The FHA Expert   

                                                                                                             FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

Follow me on:

Mortgage Myth Busters

 

 

_____________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

 

_____________________________________________________________________________________________________________________________

 

 

follow Jeff Belonger on Twitter

 

The FHA Expert's fan page on Facebook     Add Jeff Belonger to your network @ LinkedIN

                                                                            FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

Follow me on:

Mortgage Myth Busters

 

______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

 
Post is included in group: The FHA Mortgage Group
Post is included in group: Realtors®
Post is included in group: Mortgages
Post is included in group: All About Mortgages/Mortgage Networking
Post is included in group: 1st Time Buyers

13 Comments on It's official - FHA has formally announced the mortgage insurance changes for FHA loans

SEP
02
2010
1,304,469 Points 314 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jeff - this is important information for us, and buyers and sellers, to know about. We can always count on you to get us the latest updates on FHA. Suggested for a feature so that more can learn.

Jeff
11:17am • #1
1,063,916 Points 156 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jeff. it seems if the new rules impact the monthly payment as you described it will still be tougher to get into a house.
1:27pm • #2
443,247 Points 19 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jeff, thanks for this.  
2:53pm • #3
691,670 Points 9 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Thank you Jeff for the update and this good nformation. There are too maNY FHA'S OUT THERE MAYBE THiS WILl MOVE SOME TO CONVENTIONAl
3:09pm • #4
848,742 Points 153 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Thanks Jeff, I reblogged for my Ann Arbor Area home buyers.
3:32pm • #5
351,030 Points 24 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Jeff - thanks for keeping us updated for the latest FHA guidelines.
3:57pm • #6
1,304,469 Points 314 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jeff - just linked to this from my First Time Buyer Central blog. Good stuff
4:12pm • #7
733,769 Points 231 Featured Posts Outside Blog Attended Rain Camp Called Shot Master


JEFF... . my pleasure and thanks for your support and for suggesting this. .. and yes, we do need to get this out to everyone in the industry, most of all, to the buyers.

GARY.... .  in my opinion, it won't make it that much tougher... in many cases, you are talking about a reduction in price by about $10,000 or so...  but it will hurt some depending on the market and the price cut offs.  thanks

SUSAN... .  my pleasure and thanks for stopping by.

CHARLIE.... .  well, as I showed in this example, FHA loans vs conventional loans, in my opinion, it won't change people from going to FHA to conventional.  But thanks for your input.

MISSY.... . my pleasure and thanks for your support and for reblogging this.

PETRA.... . thanks for stopping by and my pleasure.

JEFF... .  thanks for coming back and for linking this to you first time buyers blog.. and thanks for the compliment.

 
4:59pm • #8
277,620 Points 8 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Jeff, thank for posting!  I found it on Missy's page and I followed to you. Hopefully you will get a feature out of it!  I will re-blog also!
10:18pm • #9
579,083 Points 61 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Hi Jeff - I saw your Agent Genius post - and now this. I reblogged and suggest it for a feature! Thanks as always for the up-to-date information.
11:16pm • #10
SEP
03
2010
167,244 Points 3 Featured Posts Called Shot Master

Am I reading this right? UFMIP will be 1% instead of 2.25%? Over the course of 4+ yrs of payments, they'll be paying more but not by a lot. Plus if they have to sell, the mortgage balance will be ever so slightly lower.

I actually see it as a little of a positive, but then I despise UFMIP with a white hot passion.
9:03am • #11
733,769 Points 231 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

 

DAMON... .  thanks and yes, I read your comment on Missy's reblog... thanks and it doesn't look like it will be featured... AR need to spread around the features and this is already 24 hrs old to them.  But seriously, thanks...

RUTHMARIE.... .  my pleasure...thanks for noticing this post and for suggesting it...

 

JULIA... .  there is always some sort of positive out of many things...  but depending on the purchase price, that payment could increase anywhere from $25 a month more to over $100 month more... 

Not sure if you read this post, Bill H.R. 5981 passes - FHA Mortgages to increase it's annual mortgage insurance premium,  but I show a chart that explains the break even point and how much more you would be spending two years after that... just because you are still spending more a month.  It's a tad confusing, but FHA knows what it's doing and in the long run, you will spend more total.  thanks

 
10:37am • #12
167,244 Points 3 Featured Posts Called Shot Master

I didn't read the other post (but I will now) and yes I do understand all of the payback period, etc and that FHA will collect more in the long run, assuming the buyer doesn't sell or refinance quickly. I just really hate UFMIP enough to see the silver lining in this cloud.
10:50am • #13

What does the graphic say?

Leave a response…

(optional)
What does the graphic say?
 
Jeff_belonger_dc_another_same_with_background_10-10-09_hd_active_rain_pic Ambassador_large

Jeff Belonger-The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Cherry Hill, NJ

More about me…

Social Media - Infinity Home Mortgage Company, Inc

Address: Cherry Hill New Jersey 08034 08002 08003, Haddon Heights New Jersey 08035, Haddonfield, NJ, 08033

Cell Phone: (609) 440-5133

Email Me


website metrics

Jeff Belonger's Facebook profile

Subscribe to Mortgage Knowledge at its BEST!!!! (Jeff Belonger)


I just want to educate people about mortgages and the process. In regards to lending, I am very creative, intuitive, honest, and one who communicates information, may it be good or bad. I am a loan officer that looks out for your best interest.







Listings

Links

Archives

RSS 2.0 Feed for this blog