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FHA Mortgage Insurance Rates Double to .90% and Could Soar to 1.55%

By
Real Estate Agent with Keller Williams Keystone Realty RS294813

Effective on any FHA loans that have a case number assigned after September 7th, 2010 the monthly mortgage insurance will be increasing to .90% from .45%.  additionally the government has given the HUD secretary the ability to raise the FHA mortgage insurance rate to a whooping 1.55%.

For those of you that aren't real estate professionals it means that the mortgage insurance portion of your monthly payment will double if you have a case number assigned after the above date.  This will result in diminished buying power and higher monthly payments.  Mortgage insurance is required on all loans with a loan to value ratio less than 80% (most loans). 

FHA case numbers are assigned right after contracts are ratified and mortgage applications are completed.  If you're in the market and looking at an FHA loan product, pick up the pace on your search and take advantage of the current mortgage insurance rates before they double. 

 

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David E. Monsour, Realtor

Keller Williams Keystone Realty, Gettysburg, PA 17325

717-319-3408

David.Monsour@Gmail.com

Comments (2)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Just what we need in this struggling market. Best of Luck,

Aug 09, 2010 05:08 AM
Ross Therrien
Prudential Verani Realty, Londonderry,New Hampshire - Londonderry, NH
Realtor, Broker Associate

How did this get by?  Not good.  Even more reason for buyer not to be in the home buying mood.

Aug 09, 2010 12:50 PM