FHA has increased Annual MI premiums across the board by .25 Points effective with case numbers issued on or after April 18, 2011.
Just when you thought things were getting stable, the Federal Housing Authority has raised the mortgage insurance annual premium, again! On October 4, 2010 FHA rasied the premium on mortgages with a loan to value greater than 95% from .55% to .90%. This next increase will take the premium to 1.15%. You can click here to read the FHA press Release. This premium change was detailed in President Obama’s fiscal year 2012 budget, also released February 14, 2011, and will impact new loans insured by FHA on or after April 18, 2011.
According to FHA Commissioner David H. Stevens, “After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market.” According to Stevens, “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”
On average, new FHA borrowers will pay approximately $30 more per month. This marginal increase is affordable for almost all homebuyers who would qualify for a new loan. Existing and HECM loans insured by FHA are not impacted by the pricing change.
Here's a chart of the premium on a $100,000 loan amount with an LTV over 95%
Annual Factor
.55%
.90%
1.15%
$45.83
$75.00
$95.83
In just over 6 months the government has doubled the monthly mortgage insurance cost to the borrower. Besure your mortgage professional has taken this change into account to be sure you or your borrower still have a qaulifying debt to income ratio.
If you have any questions feel free to contact me:
Brett Brough 918-271-0062 Brett@BrettBrough.com Licensed Loan Officer NMLS # 213001 Cityscape Home Mortgage NMLS # 200326 http://www.brettbrough.com
Cityscape Home Mortgage
NMLS #200326
Brett Brough
NMLS # 213001
Staff Profiles | Contact Us | Closing costs - loans | Closing costs - Ins. | Your FICO score | Credit Information | Testimonials | Can I Get a Loan? | Can I Catch the Market Bottom | Is Now a Good Time To Buy? | 4.5% Rate - Is it Real? | Affordability | Closing Costs | Download Adobe Acrobat | Tell a Friend | News | Real Estate Glossary | Cityscape Home | Loan App Checklist | Mortgage Saving Tips | Your Down Payment | Documenting Assets | Site Map | Loan Application | The Loan Process | Get Your Loan Faster! | Improve Your Credit Score | When to get Qualified | When to Refinance | Loan Application Info | What is a credit score? | Rate Lock Periods | Rates and A.P.R. | Refinancing Options | Customer Login | Request Industry Info | 9 Steps to Ownership | How to Sell Your Home | Winterize your Home | What is PMI? | Gifts as Downpayment | Disputing Credit Reports | Mistakes on Your Report | Bankruptcy | Getting Your Credit Report | 401k for Downpayment | Need a Bridge Loan? | Government Loan Programs | Buyer Don'ts | Paying Your Loan Early | How Much You Can Afford | HUD-1 Settlement Statement | Debt-to-Income Ratios | Home Equity Lines of Credit | Are You Pre-Approved? | Home Equity Loans | Shopping Settlement Costs | Mortgage Tuneup | Home Price Index | Daily Rate Lock Advisory | My Mortgage Blog | Win $1000
Copyright © 2012 Cityscape Home MortgagePortions Copyright © 2012 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
