ATTENTION ALL BUYERS GOING FHA......
All loans closing after April 18, 2011 will see a monthly increase on the Mortgage Insurance Premium (MIP) of around $30 on average.
This increase which was detailed in the President's 2010 budget is one of the ways the Government is trying to strengthen the agency's capital reserves.
MIP is insurance that the Borrower pays for each month to offset the risk for HUD in case the Borrower defaults on the loan.
I found it interesting that a government official had stated that"This marginal increase is affordable for almost all home-buyers who would qualify for a new loan. Existing and HECM loans insured by FHA are not impacted by the pricing change," .. this in response to the $30 per month average increase.
Nothing like the Federal Government telling the people what is and is not a 'Marginal Increase and Affordable'. Like who doesn't need that $7,200 extra you will pay for the next 20 years when you can finally have the MIP taken off?
If you have any questions about FHA financing or real estate, just give me a call at 318-308-2121, Paige Walker, Century 21 Millennium, Pineville, LA