Tuesday, March 19, 2013

FHA Makes Changes to Mortgage Insurance Premiums

What Does This Mean for Home Buyers?
FHA recently increased monthly mortgage insurance premiums on the most standard FHA loans.

How will this impact home buyers?

This will only slightly increase a home buyer's monthly payment.

For example, on a $175,000 loan amount the payment will increase by about $15 per month, based on the new premiums.

Another change is the length of time the mortgage insurance will remain in effect. This is inconsequential however, since rarely do borrowers keep loans for the full life of the loan.

Even though monthly FHA payments will increase a bit, FHA still remains the most flexible and affordable loan program for buyers with less than a 5% down payment.

The good news is that home loan rates are still at historic lows right now, and it's a great time to purchase a new home. If you have any questions regarding these changes or would like to discuss how I can help you or someone you know get qualified for a mortgage, please feel free to call or email me.