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.                                  

 

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Pulled straight from the horses mouth as they say:

~ Mitch Milat of Augusta Financial ~ Mitch@mitchforloans.com