Costs of FHA mortgages are going up again.

By
Mortgage and Lending with Universal American Mortgage Company NMLS 46083

 

FHA Loans

Costs of FHA mortgages are going up again.  HUD announced this week that effective April 1, 2012 they are increasing FHA’s upfront mortgage insurance and monthly mortgage insurance.  This came about after FHA’s Fiscal Year 2011 annual review.  It was decided that immediate action was needed to strengthen the fund.

The upfront mortgage insurance premium will increase from 1% to 1.75%.  This 75% increase will add $1,500 to the cost of a $200,000 FHA mortgage and will cost the borrower an extra $6.95 per month.

The monthly mortgage insurance will increase by .10% for loans $625,500 or less.  Using the same $200,000 mortgage example, this will add an extra $16.67 per month to the borrower’s payment.  For loans above $625,000 an additional .25% will be added to the .10% for a total increase of .35%.

Re-capping, starting April 1, 2012, a home buyer buying a home with a $200,000 FHA mortgage will cost $1,500 at closing and $23.62 more per month.  HUD believes these increases in premium will increase FHA revenue more than $1 billion through Fiscal Year 2012.

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Who Can You Call For Your Mortgage Needs in North Carolina?

Call Shay Campbell a licensed Loan Officer, NMLS# 46083, located in the Triangle area of NC, which includes Raleigh, Cary, Durham, Chapel Hill, Apex, Holly Springs, RTP and the counties of Wake, Durham, Johnston, Chatham and Orange.  Shay has over 12 years of originating experience in North Carolina and can assist you with FHA, VA, USDA, NCHFA and conventional loans.  He has a special interest in working with first time home buyers.  Shay can be contacted at 919-624-8614, shay@shaycampbellmortgage.com  or visit his website at shaycampbellmortgage.com.

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Mortgages
The FHA Mortgage Group
The Wake County Mortgage Brokers and Realtors Network of North Carolina
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Rainer
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Doug Bullwinkel
Envoy Mortgage, NMLS 6666 - Roseville, CA
Mortgage Loan Originator NMLS #281609

Just another one of many new changes in the mortgage industry.  More are coming but they're not all bad news.  Stay tuned for my upcoming blog with some good mortgage news for a change.  We need more positive things to report.

Mar 07, 2012 01:47 AM #1
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Shay Campbell

Raleigh, NC
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