FHA to Increase Mortgage Insurance Premiums

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Mortgage and Lending with Guaranteed Rate, Marin County, CA NMLS: 22343
https://activerain.com/droplet/QgX
RPM Mortgage in California

FHA to Increase Mortgage Insurance Premiums


Yes, we've all seen this movie before. But I didn't want anyone to get away with having too much fun this weekend so I thought I'd throw cold Gatorade on everyone before the start of the work week. 

The Federal Housing Administration is set to increase the mortgage insurance premiums for most of its programs and this will impact some of our buyers going into the Spring buying season. I'm going to quickly give you the guidelines below, but will also provide a dollars-and-cents overview. If you need the specifics on 15-year fixed loans, get in touch, but the vast majority of FHA buyers use a 30-year term.

The changes below will take place for case numbers assigned April 1, 2013 and later.


30-Year Fixed Rate Terms:
  • For loan amounts less than or equal to $625,500, and loan-to-value (LTV) less than or equal to 95%, the MIP factor will go from 1.20 to 1.30. On a $625,500 loan, this is a difference of $52.58 per month.
  • For loan amounts greater than $625,500, and an LTV less than or equal to 95%, the MIP factor will go from 1.45 to 1.50. On a $729,750 loan, this is a difference of $30.67 per month.
  • For loan amounts less than or equal to $625,500, and an LTV greater than 95%, the MIP factor will go from 1.25 to 1.35. On a $625,500 loan, this is a difference of $52.57 per month.
  • For loan amounts greater than $625,500, and an LTV greater than 95%, the MIP factor will go from 1.50 to 1.55. On a $729,750 loan, this is a difference of $30.67 per month.
  • The up-front mortgage insurance (UFMIP) stays put at 1.75% for all options above.

Revision to the Period for Cancelling MIP:

  • For 30-year loan terms, LTV's less than 78% will go from 5 years of required MIP to 11 years of required MIP.
  • For 30-year loan terms between 78 and 90% LTV, MIP that was previously required to stay in place for at least 5 years and until the LTV reached 78% will now cancel MIP at 11 years.
  • For 30-year loan terms greater than 90% LTV, MIP that was previously required to stay in place for at least 5 years and until the LTV reached 78% will now have MIP in place for the entire term of the loan.
  • These changes go into affect for case numbers assigned on or after June 3, 2013.


Please share this with your FHA buyers and let me know if you (or they) have any questions.

FREE Homebuyer Webinar

Have clients who are looking to buy a home in 2013 but could benefit from a discussion on the basics of home financing? Join us for a FREE homebuyer webinar on Tuesday, February 5th between 5:30pm and 6:15pm (PST). Topics we will cover:

  • Can I really afford to buy a home?
  • The pre-approval process.
  • Loan programs available to the buyer (first-time and otherwise).
  • Working with your real estate agent.
  • Question & Answer (or e-mail questions in advance to rspinosa@rpm-mtg.com)


Reserve a spot now at: https://attendee.gotowebinar.com/register/157394337701743616

 

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Robert J. Spinosa

Home Loan Professional
DRE: 01297944 NMLS: 22343

1058 Redwood Highway

Mill Valley, CA 94941

877.270.5959 Toll Free
415.367.5959 Cellular
415.366.1590 eFax
rspinosa@rpm-mtg.com


 

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Tags:
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Rainer
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Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

Thank you for the great update.  I quess they are covering themselves if things go bad again.

Feb 03, 2013 11:37 PM #1
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

 Rob, That is substantial especially when you consider that they have done this fairly recently too.

Feb 04, 2013 12:25 PM #2
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Rainmaker
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Rob Spinosa

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Can I Get a Jumbo Loan with 10% Down?
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