FHA Mortgage Insurance Premiums - Changes to FHA Loans in April 2011
The Federal Housing Administration will be increasing the monthly mortgage insurance premium on 30 and 15 year fixed rate mortgages by 25 basis points (pbs), or 0.25% of the total loan value.
The change takes effect on April 18, 2011.
So what does this mean to you?
If you are in the market to purchase a home this Spring, then try to find your dream home -- and apply for your mortgage -- before April 18th.
If you can't find a home or condo by that time, then the new mortgage insurance premiums will apply to your loan. The monthly payment increase isn't significant, but I know that when you are trying to buy your first home, every penny counts!
To follow is an example of the increase (based on a $163,000 home purchase):
|
Example of Annual Mortgage Insurance Premium increase on a 30 year term |
||
|
Average loan |
>95 percent LTV |
|
|
October 2010 0.90(bps) |
April 2011 .115(bps) |
|
|
Sales Price |
$163,000 |
$163,000 |
|
Minimum Down Payment (3.5%) |
$5,705 |
$5,705 |
|
Mortgage Amount without UFMIP |
$157,295 |
$157,295 |
|
FHA Annual MIP (monthly) |
$118 |
$151 |
|
Change in Payment (monthly) |
NO CHANGE |
$ 33 |
If you have any questions about this change, please call us anytime at 404.432.1844.
We would be happy to put you in touch with a qualified, reputable loan officer!
********************************************************
Thank you for visiting our Atlanta Real Estate Blog
Posted by: Kerry Lucasse - Atlanta GA Real Estate Agent - The URBANEST Atlanta Real Estate Group The Urban Nest team is part of Ian Marshall Realty, specializing in Intown Atlanta Real Estate, Foreclosures and Bungalows & Historic Homes
CALL ANYTIME AT 404.432.1844
*** Your Intown Atlanta Neighborhood Real Estate Specialists ***
Comments(2)