FHA Home Loans will have Increased Mortgage Insurance causing a buyer to have a higher monthly loan payment.
Last Chance To Beat The FHA PMI Increase as Mortgage Insurance is increasing.
As of April 2012, the loan for your home purchase is going to cost you more. FHA home loans will have increased mortgage insurance. Since the December 2011 Payroll Tax Extension program passed into law, the government voted to finance the tax break's $33 billion price tag via fees collected on new mortgage, your next mortgage, conventional or FHA, will have increased mandatory loan fees. This will cause higher loan payments.
For Fannie Mae and Freddie Mac conventional loans, the expected fee hike is 0.125% to your mortgage rate. For FHA borrowers, it's a 10 basis point increase to your annual mortgage insurance premium.
This marks the 5th increase to FHA mortgage insurance premiums in as many years. Because of the changes, it's harder for FHA-insured homeowners to meet the FHA Streamline Refinance program's 5% savings rule. Fewer FHA-insured homeowners will qualify for the FHA Streamline Refinance program going forward.
Changes To FHA Loans On April 1, 2012:
1 Upfront MIP to raise from 1% to 1.75%
2 Annual MIP collected Monthly increases for minimum down loans 3.5% Down Payment from 1.15 to 1.25
Example $200,0000 Purchase Price with $193,000 Base Loan = almost $23 increase ($22.78) in payment for this example
1 Upfront Prior to April 1 $1,930 added to loan balance. After April 1 $3,377.50 added to loan balance (About $6.70 increase in payment)
2 Monthly Prior to April 1 $184.96 monthly FHA MMIP After April 1 $201.04 ($16.08 increase in payment)
**** FHA Jumbo Loans (outside the AZ market) have higher monthly increase
There is still time for you to secure a mortgage and save money on a home loan since FHA Home Loans will have Increased Mortgage Insurance. Call us today and we will help you find your perfect home and save money too.