Beginning April 9, 2012, new FHA mortgages are subject to a 1.75% upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium of up to 1.25%

HUD(FHA) announced that the monthly mortgage insurance is increasing on all case numbers ordered on and after April 9th.  This increase will be .10 on all FHA mortgages that have monthly mortgage insurance.  A FHA case number is ordered when you start a new FHA loan.  This change is for purchase loans and regular refinances(not streamlines).  HUD is also increasing the upfront mortgage insurance amount from 1% to 1.75%.  To give this change some perspective, the increase in up front mortgage Insurance will increase the payment on a $200k loan by $5 a month.

Here are the exact changes to the monthly Mortgage Insurance:

30yr Mortgage(20 yr, etc)

LTV: 95% +    Mortgage Insurance: 1.25

LTV:95% and under. Mortgage Insurance: 1.20

15yr Mortgage

LTV:90%+   Mortgage Insurance: .60

LTV: 90% and under.   Mortgage Insurance: .35

And don’t forget any FHA 15yr mortgage with a Loan to Value of 78% and less has no mortgage insurance.  This increase of .10 to the monthly mortgage(30yr) would crease the payment of a $200k loan by $17 a month

And also another change that could impact our FHA borrowers is …  starting April 1st all collections that have a total balance of $1000 or more must be paid off.  FHA is bucking down.

                                                                           

 

Marsha Stone

Senior Mortgage Advisor

NMLS# 90796

Platinum Home Mortgage Corp

910 679-4539 Ofc/ 910-232-3221 mobile

910 679-4541 Fax

3 Keel Street Suite 3 ,Wrightsville Beach, NC 28480

mstone@ephmc.com