Monday, April 18th marks the beginning of increased FHA monthly Mortgage Insurance Premiums (MIP).
For Buyers planning to purchase in the near future using FHA with less than 10% down, getting into contract and making loan application before 4/18/11 will yield a monthly savings. For example, a loan of $100,000 will have a monthly premium of $96.00 as opposed to $75.00 before 4/18. Since the 16th and 17th are Saturday and Sunday, application should actually be made by 4/15.
The New Monthly MIP For FHA as of 4/18/2011:
30 year loan over 95% loan to value: 1.15% MIP
15 year loan over 90% loan to value: 0.50% MIP
15 year loan under 90% loan to value: 0.25% MIP
The upfront Mortgage Insurance Premium of 1% (down from 1.75% as of 3/2010) will remain the same and Purchaser has the option of paying out-of-pocket at closing, or rolling back into the mortgage.
If you are unable to beat the deadline, remember rates are still very low and there are still many wonderful properties available. For Buyers who qualify, your lender will be able to offer the latest and greatest loan programs for you to choose from.
If you need a lender, please let us know and we will send you a list of our Preferred Lenders.
Marie Smith CRS, GRI, Broker Associate