Saturday, February 2, 2013

FHA MIP Permanent after April 1, No Fooling!

FHA Increasing Mortgage Insurance cost as of 4/1/2013
Effective for FHA Case Numbers pulled after April 1, 2013:
For most FHA borrowers, the annual MIP (mortgage insurance premium) will be increased.
Most FHA buyers put 3.5% down and get a 30 yr fixed rate loan, and buy homes at prices below $625,000. 
For these buyers, the annual MIP will be increased to 1.35% per yr (from 1.25%per yr) 
Also, the mortgage insurance premium will become permanent for many borrowers, whereas, current FHA Policy calls for  mip to drop off after a certain number of years, and principal pay down.
So, it would be advisable to buy a home now, before these increases take effect.                                  


Pulled straight from the horses mouth as they say:
~ Mitch Milat of Augusta Financial ~

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