You may have heard talk in the news lately regarding some increases FHA is making to both its upfront and annual mortgage insurance premiums. I wanted to reach out to you and let you know why FHA is doing this...and what this could mean to you.
It's important to understand that mortgage insurance premiums for new purchases and regular refinances are increasing to help keep FHA financially strong. FHA's cash reserves hit a record low of $2.6 billion last year–and since approximately one-third of all residential home loans in the U.S. are FHA loans, it is important for FHA to be in a strong position.
So what does this mean to you? FHA case numbers assigned after April 9, 2012 will be subject to the higher mortgage insurance premiums.
If you have any questions about these increases–or if you have been considering an FHA loan–give me a call or send me an email today! There's still time to act before these increases go into effect!