“Annual Mortgage Insurance Premium Change” effective April 18, 2011. Let’s look at what this means for those hoping to secure an FHA mortgage in the future:
- The Annual Insurance Premium will increase .25% for standard forward mortgages. The Up Front Mortgage Insurance remains at 1.00%.
- NOW is the time to refinance your current home OR call your Realtor and find a new place to call home …the rates are still at historically low levels and the price for an FHA loan will be going up!
What does all this mean? For example, let’s say you and your realtor have found the perfect home for you to purchase. The purchase price of this new home is $163,000. Utilizing FHA financing the down payment will still be at 3.5% or $5705, the upfront mortgage insurance premium (UFMIP) will still be at 1% or $1573, the change will be on the Annual Mortgage Insurance Premium which is paid monthly. Today, that will cost you $118 a month until 20% equity is reached — after April 18, 2011 it will cost you $151 a month. That is $33 more a month until 20% equity is acquired. If you have an FHA mortgage and are considering refinancing the time to act is now! Rates continue to be at historical lows, do not let this change in the monthly insurance premium reduce the money you could be saving, call me today at 314.265.1531!