With mortgage insurance just now increasing on FHA loans, which account for 50% of the loans in America today, it is a could time to consider USDA loans which DO NOT require money down or private mortgage insurance.
If you haven't seen the new increases on FHA financing note hte information below
New FHA Annual (monthly) MIP Increases (These changes were effective April 18, 2011
(for case numbers assigned on or after this date)
The Upfront Mortgage Insurance remains at 1.00%.
The Annual Insurance Premium will increase from .90% to 1.15% for LTV's greater than 95% on 30 yr loans.
The Annual Insurance Premium will increase from .85% to 1.10% for LTV's less than or equal to 95% on 30 yr loans.
The Annual Insurance Premium will increase from .25% to .50% for LTV's greater than 90% on 15 yr loans.
The Annual Insurance Premium will increase from 0% to .25% for LTV's less than or equal to 90% on 15 yr loans.
To read Mortgagee Letter 11-10 in its entirety, click here.
In other words: on a $100,000 FHA 30 year fixed this equals a $21 higher monthly payment for homebuyers.
To learn more about USDA loan options call me at 610-764-3062 or email, jroosevelt@kw.com
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