HUD(FHA) just announced that the monthly mortgage insurance is increasing on all case numbers ordered on and after April 9th. This increase will be .10 on all FHA mortgages that have monthly mortgage insurance. A FHA case number is ordered when you start a new FHA loan. This change is for purchase loans and regular refinances(not streamlines). HUD is also increasing the upfront mortgage insurance amount from 1% to 1.75%. To give this change some perspective, the increase in up front mortgage Insurance will increase the payment on a $200k loan by $5 a month.
Here are the exact changes to the monthly Mortgage Insurance:
30yr Mortgage(20 yr, etc)
LTV: 95% + Mortgage Insurance: 1.25
LTV:95% and under. Mortgage Insurance: 1.20
15yr Mortgage
LTV:90%+ Mortgage Insurance: .60
LTV: 90% and under. Mortgage Insurance: .35
And don’t forget any FHA 15yr mortgage with a Loan to Value of 78% and less has no mortgage insurance. This increase of .10 to the monthly mortgage(30yr) would crease the payment of a $200k loan by $17 a month.
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