FHA Mortgage Insurance for the Life of Loan?


 

By Joseph Small

Tucson FHA mortgage insurance money

***UPDATE:FHA Mortgage Insurance just got lowered. Read here: FHA Lowers Mortgage Insurance
Tucson, AZ – With the red ink line getting steeper and longer, the
Federal Housing Administration
or FHA is strongly considering making some changes to their annual mortgage insurance premiums on all future FHA home loans sometime in 2013 (Update: April 1, 2013). These changes are important to those of you who are considering buying a home with an FHA home loan mortgage or are considering refinancing with an FHA Streamline loan.

The FHA is proposing a .10 basis point increase to the annual
mortgage insurance
premium, which is the monthly mortgage insurance you pay on your FHA loan. Presently, this rate is at 1.25%.. so, for example, this .10 increase will add an additional $20 monthly to a $200,000 FHA mortgage.

Currently, FHA requires annual mortgage insurance premiums on all FHA loans for a minumum of 5 years and cannot be waived until there is a Loan-to-Value or LTV of 78%.
Along with the .10 annunal mortgage insurance premium increase, the FHA is considering dropping the current minumum 5 year and 78% LTV and making it permanent – the Life of the Loan.

With a reported $16.3 billion dollar deficit, the FHA is looking for ways to raise revenue to help its bottom line and long-term solvency. In its 78 year history, the FHA has never had to ask for a tax payer funded bailout.

Recap of 2013 FHA Mortgage Insurance Proposed Changes

  1. The FHA is going to increase monthly mortgage insurance payments again, this time by .10 basis points
  2. The FHA is eliminating Annual MIP removal on loans taken out after this spring. This means new buyers will pay FHA “MIP” for the life of the loan.

So if you are thinking of buying with an FHA loan or refinancing your current FHA mortgage, then you might want to consider doing it sooner than later. These
FHA mortgage insurance
changes will costs you. Give my team a call and we can help you get the process started.

Click here to read the entire FHA Press Release.

Joseph Small and his team at Guild Mortgage Company is your trusted source for all your FHA home loan mortgage needs in Tucson, Sierra Vista, Oro Valley and Vail, Arizona. Give them a call today! Maybe one day you too will say, “Joe’s My Lender!” (520) 303-5620


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