FHA Changes to Mortgage Insurance APRIL 18 2011 Alameda CA

Mortgage and Lending with Caliber Home Loans NMLS# 242952
That’s right! On April 18th 2011 FHA Monthly Mortgage Insurance Premiums go up for the first time since the changes in effect as of Oct 4th. The change is .25 basis points to the Monthly Mortgage Insurance Premium. The 25 basis point rise was proposed last week as part of the Obama administration’s report to Congress on reforming the nation’s housing finance system, and was detailed in President Obama’s fiscal year 2012 budget. FHA Commissioner David Stevens says the increase will help strengthen the agencies depleted reserves. “This quarter point increase in the annual MIP is a responsible step towards meeting the congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.” He also states the cost to the borrower will be about $30 a month. This is true if the property you are buying is around $160,000. The truth is it will raise payments by $20.83 per every hundred thousand. No this is not a huge increase however it is another increase in borrower closing costs making it more expensive and challenging to get a home loan. Links http://www.whitehouse.gov/omb/budget/Overview/ http://the-buzzz.com/2010/08/20/mortgage-insurance-premiums-for-fha-financing-go-up-oct-4th/

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