FHA are starting to implement the new annual mortgage insurance premiums. With effective April 18 the new premium is 1.15% compared to .90% currently. As a result, a 30 year $200,000 FHA mortgage payment will increase over $42 per month with the standard 3.5% down.
This is the second increase since October and although there was a reduction in the financed portion of the mortgage insurance in October, the effect on a $200,000 mortgage has risen nearly $90 per month when both increases are considered.
The bill also gives the FHA the authority to raise the annual fee as high as 1.55 percent which would take it to an extra $152 month
So what does this look like :-
Based on loan of $200,000 at 5%
|Loan today at 0.9%||Loan after April at 1.15%|
|Up $42 month|
So what does this mean ….
IF YOU ARE GOING FHA, IT WILL BE CHEAPER TO BUY A HOUSE TODAY BEFORE April 18, 2011.
So “Who you Going to Call”
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