Monthly Mortgage Insurance Change on FHA Loans
Something very important will be changing in April regarding FHA and the costs associated with these loans. This
information is intended to educate and buyers who are "on the fence" about making a purchase decision.
FHA recently announced that they are increasing their Monthly Mortgage Insurance Premiums effective with all new case numbers issued on/after 4/18/2011. Case numbers are pulled when the property goes under contract, and are tied to that specific property.
On a FHA 30 year fix loan, with a minimum 3.5% down payment, the new monthly MI factor will be 1.15%; currently it is .90%.
With down payments of 5% or more, the new MI factor will be 1.10% (currently .85%).
On a $300,000 mortgage this is equivalent to a $63/month increase in the monthly payment.
Here is where you can request the FHA notice of increase with a chart showing the premium costs.
Comments(0)