ATTENTION BUYERS! Another reason you should buy a home NOW

If you are a buyer who is looking to secure an FHA loan, NOW IS THE TIME!

In April the FHA will be increasing the MIP mortgage factors for all FHA loans. 
In 2009, the FHA charged 0.55 percent

• In 2010, the FHA charged 0.90 percent
• In 2011, the FHA charged 1.10 percent
• In 2012, the FHA charged 1.25 percent

In April 2013, the FHA may get the ability to charge 2.05 percent for annual mortgage insurance premiums. This would be the highest annual MIP in FHA history.

Here is what that looks like on a $150,000 loan.

Old Rate = 1.25% so the monthly MIP payment would be $156.25

New Rate = 2.05% so the monthly MIP payment will be $256.25

In addition, in June of this year the FHA is no longer going to remove the MIP after 5 years or when the loan reaches 78% LTV.  Instead, the MIP may be required for the entire life of the loan.

As further details are released, I will update all of you.


(Courtesy of Fred Dopman, VanDyk Mortgage Corporation)