The new FHA MORTGAGE INSURANCE PREMIUMS go into effect for CASE NUMBERS
assigned on or after 10/4/10
NOW is the time to contact your potential FHA buyers & clients (especially
those possible FHA streamline refinances) and get word out. If they want a
choice of options, they need to get a purchase contract and/or a loan
application in NOW. The new MIP has merits in that it will be a lesser loan
amount financed and therefore less loan to pay off when people sell their
house. However, it causes a HIGHER PITI payment that may not be appealing
to people.
Current upfront mortgage insurance premium - 2.25 bps ~ On or after
10/4/2010 - 1.00 bps ~ LOWER!
Current monthly MIP - .55 bps ~ On or after 10/4/10 - .90 on LTV's > 95%
~ HIGHER!
Take a look at the attached analysis here: FHA_Premium_Changes_Analysis[1] to see the significant difference this
change will make on a $150,000 purchase price. You will notice the lower
UMIP will mean an $1800 lower loan amount. But, the much higher monthly MIP
would increase the monthly payment $32! This is going to have an impact on
borrowers and their financing options. Call or email me with questions! We
are closing FHA loans in 30 days!
Courtesy of Kathy Lamb, Union Saving Bank
Visit our blog at The Home Finder Network Blog
Rainmaker
32,081
32,081
RE/MAX Go Beyond8291 Beechmont Avenue Suite ACincinnati,OH45255
local_phone(513) 519-3912
smartphone(513) 519-3912
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