This week, FHA announced that there will be an increase in MIP (mortgage insurance premiums). For case numbers obtained on or after April 1st, 2013, the monthly mortgage insurance will increase 10 basis points across the board.
For case numbers obtained on or after June 3rd, 2013, the following changes will apply:
- FHA loans over 90% loan-to-value will carry the monthly mortgage insurance until the loan is paid in full
- FHA loans equal to or less than 90% LTV will have the monthly mortgage insurance in force for 11 years. This applies to both 15 and 30 year terms.
- 15 year FHA loans that have an LTV of 78% or less will now carry monthly mortgage insurance.
In order to compensate for the increased costs of FHA financing, several of our local lenders are introducing low down payment conventional loans. These products have slightly higher interest rates, but the monthly mortgage payment still ends up being lower due to the absence of mortgage insurance.
We would be happy to connect you with a knowledgeable local mortgage lender who can help you decide which product is best for your family. Click below or email us at concierge@lizmoore.com to get started.
