Mortgage News

FHA Increases Mortgage Insurance Premium to 2.25%

January 22nd, 2010 1:20 PM by Anne James

HUD announced yesterday that the upfront mortgage insurance premium would be raised to 2.25 as of April 5, 2010 and will affect all case numbers pulled after that date.

What does this mean? It's now the same as for VA Loans and on, say, a $200,000 loan would add $4,500 to the loan amount over the previous $3,500. It would increase your payment by $5.29 at 4.875% interest rate (APR, 5.279). Not alot in exchange for putting only 3.5% down payment or $7,000!

I would....buy a home with the current 1.75% and up to $8,000 tax credit BEFORE April 5th and BEFORE the tax credit expires April 30, 2010.

Posted in:General
Posted by Anne James on January 22nd, 2010 1:20 PM

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