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New FHA Monthly MI Premiums Coming Soon
Changes to FHA mortgage insurance premiums will impact lending in 2012.
FHA has announced that in 2013 that Upfront MI and Monthly MI Premiums will be going up and more importantly if you have a FHA-backed mortgage the time to act is now.
In its 2012 annual report, the U.S. Department of Housing and Urban Development announced it will reverse the original plan to cancel the mortgage insurance program for FHA mortgages, effective “sometime in 2013.” The effective date is dependent on when the loan is endorsed by HUD. So if you are using FHA for financing and are on the fence, this is very important. If the premiums go up before you buy, it may cause an issue on how much you can qualify for. Plus we don’t want you to get caught after the change and have to carry monthly MI for the life of the loan.
Currently, once the principal balance on the mortgage reaches 78% and have made a minimum of 60 mortgage payments, you are free from paying the premium.
New home buyers who plan on using FHA for financing should expect to still see the mortgage insurance payments remain due on the loan until the house is sold or can be refinanced into a conventional mortgage. Stay ahead of the curve and make sure you are aware of the changes so you can make educated decisions and hopefully find a house before FHA puts you out of a loan.
Loudoun County Living LLC is one of the top teams at Keller Williams Leesburg Office. LCL has consistently continued to grow through the difficult market we have experienced over the last several years. The team consists of experienced and skilled agents who specialize in the sale and purchase of Short Sales, Foreclosures and Traditional sales. With over 15 years of experience, Loudoun County Living LLC is the best choice in Loudoun County to help you buy or sell your home or investment property. The team is led by managing partners Dawn Billow and Barry Harlowe and consists of skilled buyer’s agents and a full time support staff.
Loudoun County Living LLC | Keller Williams Leesburg
50 Catoctin Circle NE #101, Leesburg, Virginia, 20176 | 703-831-7653