March 01, 2011

HUD to Increase Monthly Mortgage Premiums Again

Posted to Jeremy Page

Beginning April 3, there will be a new premium structure on 15 and 30 year FHA loans. The annual MIP will be raised by a quarter of a percent point. The upfront MIP will remain at 1%. This is part of the ongoing effort to strengthen the Federal Housing Administration’s (FHA) capital reserves.

Last year FHA made changes to its MIP which resulted in an increase of roughly $30 per month on a $100,000 loan. After the new increase next month, that cost will go up approximately another $20 per month. This will effect some buyers pre-approval amount. There is still an opportunity to get the lower rates, as long as the FHA case number is assigned by April 2, 2011.

If you are interested in buying a home before this change give me a call or text at 317-413-5311 or email me at . I am a Real Estate expert focusing on Boone, Hamilton, Hendricks and Marion Counties here in Central Indiana.

Posted by:  Jeremy Page

Leave a Comment