For all mortgages with FHA case numbers assigned on or after June 3rd the monthly mortgage premium is going to increase. This will affect both 30 year fixed and 15 year fixed loans. The increase is not huge and should not take serious buyers out of the market. For example on a $150,000, 30 year fixed the monthly premium will go from $156.25 to $168.75. To avoid this increase buyers need to be under contract and have an FHA case number assigned before June 3rd which is a Monday.
The other change that will make a difference is that the monthly mortgage insurance now stays on the mortgage for 30 years on 30 year loans and for 11 years on 15 year loans. Currently the monthly mortgage insurance can come off in 5 years.
Over the life of a loan these are costly changes. If you can afford to go ahead and buy now, while rates are historically low and prices are still very low, it really makes no sense to wait with these changes on the horizon. Contact me today to help you close on a home with an FHA loan BEFORE the costly changes take place.
Many thanks to my good friend and mortgage professional, Todd Sheppard for providing the FHA update to help us all plan better for our real estate plans in 2013. If you are in the market and need a responsive mortgage professional, contact Todd today.
Todd Sheppard
NMLS #97590
Southeast Mortgage
NMLS #103956
2475 NorthWinds Pkwy Suite 530
Alpharetta, Ga 30009
Office: 770-279-0222 ext. 440
Toll Free: 800-344-8788 ext. 440
Cell: 770-304-6699
Fax: 770-664-1651
Email: Todd.Sheppard@SoutheastMortgage.com
Website: www.southeastmortgage.com/toddsheppard
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