FHA Loan Increases
Important changes in FHA financing announced late today.
Two major changes have been passed by FHA and will be implemented with contracts dated on or after April 1st.
The upfront MIP (Mortgage Insurance Premium) is increasing from 1% – to 1.75%The monthly MI (Mortgage Insurance) premium is increasing from 1.15% to 1.25%
To put this in perspective – on a $200K loan at todays rates – this increases the borrowers monthly payment almost $25!!!
FHA estimates this will decrease FHA loan origination by 25% for 2012.
~ Information provided by Starkey Mortgage
Keller Williams Realty