It was just last October 8th when the FHA increased the monthly mortgage insurance premium from 0.55% to 0.9% and now on April 18th, 2011, the FHA is hiking the premium again. This time the mortgage insurance premium will increase to 1.15% for 30 year loans with a Loan to Value (LTV) ratio of greater than 95%.
Let’s say you’re buying a $150,000 house which gets you a nice house in Spring Texas and your down payment was 3.5% (the minimum down payment on a FHA loan) and your loan was for 30 years, your monthly mortgage insurance premium will increase $30.16. That’s a 28% increase.
Put another way …. The $30 increase in the FHA monthly mortgage insurance premium just decreased your buying power by $6,000.
How do you avoid the increase in the FHA monthly mortgage insurance premium? You need to be in contract on a Spring Texas home before April 18th. You don’t have to close by April 18th. You only need to be in contract.
Best Realtor Ever! I cannot harp on how wonderful Jill has been during my new home build purchase! She has... read moreBest Realtor Ever! I cannot harp on how wonderful Jill has been during my new home build purchase! She has gone above and beyond by attending every single meeting that I had (design center meeting, electrical, blue tape meeting, final acceptance meeting, closing). During the design appointment, Jill gave pointers on what upgrades would have the best resell value and how much I would see out of it. It was my first time going through the new home building process so it helped make the meeting way less stressful. Jill has been there for me every step of the process even after the closing! I truly have never met a more passionate, hard working individual! I would HIGHLY recommend! read less