We've all heard about the inevitability of interest rates on the rise for home loans. Did you also know that Mortgage Insurance Premiums for FHA loans are on the rise as well?
Effective April 18, 2011, HUD will increase the mortgage insurance premiums for FHA loans by 25 basis points (.25%). What does this mean for your buyers? And increase in their monthly mortgage payment!
For example, for a $250,000 loan, the monthly mortgage payment will increase by $52.08 per month. This increase causes a $10,000 loss in purchasing power for them!
It's important to let all of your clients know, who have been looking to purchase, that time is running out before this increase will hit their wallets.