Frisco Texas Mortgage, Real Estate, Events, and more

FHA MIP Changes Effective April 18, 2011

FHA MIP Changes Effective April 18 2011 

Its only a week away for yet another change which will effect homebuyers in Frisco Texas.

A few weeks back, it was announced within HUD Mortgagee Letter 2011-10 that there would be an increase in the Annual Mortgage Insurance Premium for all new FHA Case Numbers assigned on or after April 18, 2011.

If you recall, there were changes to the Mortgage Insurance Premium back in October 2010 which changed the UFMIP (UpFront Mortgage Insurance Premium) from 2.25% to 1%. That was great news, except that the Annual Mortgage Insurance Premium increased from .55% up to .90% (depending on the Loan To Value ratio).

So, how will this new change effect Homebuyers as of April 18th? Well, the good news is that the Upfront Mortgage Insurance Premium will not incease. It will remain at 1% of the Loan Balance.

The change is specific to the Annual Mortgage Insurance Premium which is increasing 25 BPS (or .25%). Below is a snap shot from the Mortgagee Letter 2011-10:

For a homebuyer, this means that your payment is going to increase on a monthly basis. If your principal balance is $180,000 with a 96.5% Loan-to-Value, your MIP payment would increase from $135.00 a month to $172.50 ($37.50 extra per month).

If you have would prefer not to have your payment increased, you only have two options. The first option is to have an offer accepted and your mortgage loan originator to create a FHA Case Number prior to April 18th. This is only suggested IF you already know the house of your dreams. Do not feel rushed to make a decision.

The second option is to look for a home that is slightly less costly. For example, instead of a home for $180,000, you could choose a home for $172,800.

This scenario may not fit your specific Texas home loan. Feel free to contact me to discuss your financial situation further.

 

*********************************************************

Are you looking to purchase a Texas home?  Perhaps you love your Texas home but would be interested in refinancing your Texas mortgage to a lower interest rate?  

I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

Texas Home Loan Consultant

Always available for your Texas Mortgage and Home Loan needs!

John R Cannata    P#214.728.0449

NMLS # 322646

Texas Home Loan Expert

Frisco TX Mortgage

      

 

The views expressed on this site are mine alone and do not reflect the views of my employer.

Comment balloon 15 commentsJohn Cannata • April 12 2011 12:23AM
FHA MIP Changes Effective April 18, 2011
share
FHA MIP Changes Effective April 18 2011 Its only a week away for yet another change which will effect homebuyers in Frisco Texas A few weeks back, it was announced within HUD Mortgagee Letter 2011-10 that there would be an increase… more
Yesterday I got to meet ActiveRain member John Cannata.
share
Sometimes its opportunities like this that allow you to meet a fellow ActiveRain member. As you will read below, Richard Weeks was kind enough to invite me to speak during a portion of his Finance Class in Plano over the weekend. I had… more