Beginning April 1, 2013, most FHA-backed mortgages will be subject to an MIP increase of 10 basis points annually, or 0.10 percentage points. For example an increase from 1.25% to 1.35% would increase the monthly payment $8.33 per $100,000.
In a potentially bigger hit, FHA borrowers will have to continue paying annual mortgage insurance premiums for a longer period of time.
If want to get clients locked in before the April 1, 2013 deadline, you need a contract and a case number assigned by HUD.
The good news is that FHA mortgages — although more restrictive — remain among the best “deals” for both low-down payment buyers and current homeowners with FHA-backed loans.
Call us with questions regarding changes with FHA loans. @ 480-240-9724 ext. 1
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