FHA Changing Monthly MIP rates...effects Purchases and refis...Again
I keep telling my loan officers, don't nobody bring me no bad news!!!!!! then I get this info today!
Provided from Brandon J. Blalock, Senior Mortgage Loan Officer McLean Mortgage Virginia Beach, VA
Here we go again! The last increase took us from 0.55% to 0.90% (annually) on a 30 year fixed with 3.5% down. This next increase is an across the board 0.25% increase, so this will take us from 0.90% to 1.15% on a 30 year fixed.
What does this mean in terms of your monthly payment?
For each $100,000 borrowed on an FHA loan, your monthly payment will increase by $20.83. 
Why is this increasing?
The word is that the FHA reserve fund continues to head in the wrong direction and they will continue to make these types of course corrections until they stop the bleeding.
How can I avoid this increase?
There is still time to avoid the increase. You will need to obtain an FHA case number on or before April 17, 2010. That means that you will need to determine which property you are purchasing prior to that to avoid the increase -
or if you are refinancing, you will need to start the process and have your lender order a case number before this date.
If you need more info on how to qualify before the change, give me a call!
Call me if you know someone who needs to buy, sell, or rent!
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