New FHA Monthly Mortgage Insurance Premium will raise borrower's monthly payments! Beginning October 4th, the Federal Housing Administration will change the mortgage insurance premiums charged to borrowers.Currently borrowers are charged 2.25% of the base mortgage amount upfront and .55% per year for at least 5 years or until the principal balance of the loan drops below 80% of the value of the home for loans which amortize more than 15 years with FHA's minimum down payment.The new mortgage insurance calculation reduces the upfront mortgage insurance premium to 1.25% of the base mortgage amount, but increases the monthly mortgage insurance premium to .85% or .90%, depending on the borrower's down payment for loans which amortize more than 15 years. Furthermore, the Federal Housing Administration has the power to increase the monthly mortgage insurance premium to 1.55%. How will this affect your buyer's?Purchase Price: $200,00030 year fixed rate: 4.75% | | |
Taxes and Insurance will not changeThis is a opportune time to contact any FHA buyer on the fence. Case numbers have to be ordered prior to October 4th to avoid the monthly payment increase.These changes not only add cost to financing through FHA, but will also reduce the purchasing power of your customers.Please click on HUD ANNOUNCEMENT to read the actual announcement from David Stevens, Assistant Secretary for Housing. For all your Ocala Real Estate Needs contact Dawn Rupersburg Coral Shores Realty 352-553-3369 | |