FHA is making changes to the monthly mortgage insurance rate on all FHA loans.
These changes will take effect on April 17, 2011. FHA has decided to increase the monthly mortgage insurance rate by .25% on all FHA loans. This means a 30 year fixed rate loan with an loan to value above 95% will go from .90% to 1.15%.
To help illustrate what this means to borrowers we will take a look at a loan example:
| Sales Price |
Down |
Loan Amt |
UFMIP |
Total Loan |
P&I Pmt |
MIP |
P&I&MIP |
| $175,000 |
$6,125 |
$168,875 |
$1,688.75 |
$170,563.75 |
$915.62 |
$127.92 |
$1,006.10 |
| $175,000 |
$6,125 |
$168,875 |
$1,688.75 |
$170,563.75 |
$915.62 |
$163.46 |
$1,043.55 |
| |
|
|
|
|
|
$35.54 |
$37.45 |
The top line represent the way it is before the change and the second line shows the change. As you can see the increase in the FHA loan monthly mortgage insurance rate will cost you $35.54 more per month.
So, if you are looking to buy a home using an FHA loan, you may want to consider getting your loan in order to get an FHA case number assigned prior to this change.
Give us a call to discuss your mortgage needs – we are here to help!