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FHA Mortgage Insurance to increase

FHA Mortgage Insurance to increase

HUD has announced that in an effort to bolster it’s capital reserves they are going to once again increase the mortgage insurance premiums on FHA loans. The change will go into effect once they issue a mortgagee letter and set a start date.

The impact would be about $17 per month increase in mortgage insurance to you if you bought a $200,000 house.

The bigger impact comes from the second half of the change. That is that for most borrowers the mortgage insurance will stay on the loan for the life of the FHA loan. Currently it falls off once you reach 78% LTV (of your sales price, or appraised value at time of refinancing).  This won’t apply to all borrowers, but from the announcement HUD put out, unless you put down 10%, you will have the mortgage insurance for the life of your FHA mortgage once this change goes into effect.

Now is the time to refinance your existing loan if you have been thinking about it, or to get under contract so you can capture the existing policy before it changes.

Give us a call with questions~

Ray

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Licensed in Colorado as Maestro LLC (DBA Mortgage Maestro Group) is an Equal Housing Lender.

387 N Corona St #646, Denver, CO 80218.

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Consumers wishing to file a complaint against a company or a residential Mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the Department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.

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