FHA Mortgage changes bring higher costs to buyers!
FHA MORTGAGE CHANGES, EFFECTIVE APRIL 18, 2011
For all FHA case file numbers assigned on or after April 18th, the monthly FHA mortgage insurance increases from .90% to 1.15%.
– On a $100K loan, this will increase the monthly payment by $19.96.
– On a $200K loan, this will increase the monthly payment by $39.91.
Doesn’t seem like much? In effect a .25% rate increase
– About $4,000 less house for $100K buyer
– About $8,000 less house for $200K buyer
If you are thinking of buying a home, then it will cost you less money if under contract by April 17!
FHA should continue to be your best option for buyers with less cash available, here’s why:
Lower down payments
Cheaper mortgage insurance
Lower closing costs
Less restriction on seller’s paying closing costs
Rate is minimally affected by credit score
Bottom line for buyer is less out of pocket and a lower payment.
\nBy: on April 6th, 2011 Category: Uncategorized