FHA Mortgage Payments Going up
In light of the Announcement on 1/20/2010 the Federal Housing Administrations announcement that they were raising the Up Front Mortgage Insurance Premium ( UFMIP ) by 28% (from 1.75% to 2.25%) of the loan Effective 4/5/2010. Today comes the announcement that the monthly portion of FHA MIP is proposed to increase 55% from .55% to .85% in the president’s new budget.
How does this effect you? Well on a $200,000 house your Upfront MIP will cost you an extra $1,000. On that same house your payment just went up about $468 per year. I am revising my initial analysis posted here. There will definitely be a moderate impact on the market later this year. In my original post I said the impact will me nil in most cases. While that may be true for USDA and VA Mortgage Loans is is no longer the case with FHA Mortgage Loans.
If my previous Post was not strong enough I’ll put it this way… If you are even thinking remotely of buying a home or refinancing in the Conroe, Lake Conroe, Woodlands or Huntsville, Texas areas you need to stop “thinking” about it and start doing something now or your cost are going up significantly and in the case of a refinance may completely remove the option from you if you refinance.
If you have any questions or would like me to meet with you for a consultation feel free to contact our office at our contact page
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