FHA MORTGAGE INSURANCE CHANGES COMING IN 2013
FHA has announced that they are increasing mortgage insurance premiums yet again. This is the continuation of a trend for FHA – FHA has raised mortgage insurance premiums for 3 years straight. Here are the changes coming:
– 10 bps increase on monthly mortgage insurance premiums. This will raise mortgage payments by $8.33 per month per $100,000 in loan amount.
– Monthly Mortgage Insurance will now be carried for the life of the loan. Currently, you can remove mortgage insurance premiums after 5 years and once you pay the loan down to 78% Loan to Value of the original appraisal.
These are big changes, especially the Monthly mortgage insurance for life. If you are looking to streamline your existing FHA loan or purchase a new home with a FHA loan, now is the time to do it before the mortgage insurance premiums go up and last for the life of the loan.
FHA RAISING MORTGAGE INSURANCE PREMIUMS IN 2013 – THEY WILL NOW LAST FOR THE LIFE OF THE LOAN.