Roost Realty
homebuying

FHA Changes Premiums

March 30, 2011 by · Leave a Comment 

FHA buyers have always paid a monthly insurance premium (MIP). Beginning April 18, 2011 that premium will be rising. According to Quicken loans a homeowner with a $200,000 FHA mortgage will pay $42 extra per month. That is over $500 per year. The premium actually varies depending on your loan-to-value ratio. This premium can be paid we mainly see buyers finance these with the loan.

If you are a buyer currently looking then you can still get a property under contract prior to this change. You will need to identify a property so that your mortgage provider can get you an FHA case number before April 18th.

Photo by: Darren Hester http://www.flickr.com/photos/darrenhester/3908285404/

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