Listed below is a news release about the upcoming changes. The mortgagee letter is not yet out – so there might be more changes – but here are the highlights:
· Upfront MIP is increasing by ¾% to 1.75% on all loans
· Monthly MIP will now be split into 2 categories – with $625,500 being the benchmark for the change
o .10% for loans at or below $625,500
o .35% for loans at or above $625,501
The changes will be effective on and after 4/1/12 – with another update occurring on 6/1/12. I believe the 2nd June change will be limited to the loans over $625,500 but until we see the mortgagee letter I don’t have specifics. USUALLY the changes are tied to the case number issuance date, but this news article says “insured”. Therefore it is possible it might impact pipeline loans.
As soon as more information is received I will advise everyone. Again, all I have right now is the news release and not the actual mortgagee letter.
The real question, what will it cost?
Based on an FHA 30yr Fixed $200,000 loan amount at 4%:
- Current: P&I = $964.38 +$191.67 (monthly MI) = $1156.05
- Proposed: P&I $971.54 + $208.33 (Monthly MI) = $1,179.87
So that would be an additional $23.82/month
In comparison a USDA loan of $200,000:
- P&I= $974.32 + $51.02(monthly Guarantee fee) = $1025.34
This is important information to share with your buyers!
Have a great week!
Mortgage Loan Originator
NMLS ID# 248937
http://robertrauf.remn.com/Default.aspx or my blog: http://activerain.com/blogs/rrauf
(732)557-6920 x102
Since 1987 I have been helping my clients fulfill their dream of home ownership!
Real Estate Mortgage Network Inc.
Real Estate Mortgage Network, Inc. is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
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