Yes, the cost of an FHA mortgage is going up for any new case id numbers ordered past September 7th, 2010. The mortgagee letter has not come out yet but it was passed through congress (HR 5981) for this to take place. Here is the break down:
Old:
2.25% Upfront mortgage insurance premium
.55% Monthly payments
NEW:
1.00% Upfront mortgage insurance premiums
.85 to .90% monthly and HUD could raise to 1.55% max when needed.
Well, you might be thinking this is a good deal because the UFMIP went down a lot and monthly barely went up…….well think again. Here is a video showing how this is just increasing the costs a lot more for homebuyers.
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Oct2
Well we do have this saying in Chicago……..”Wait till next year.” so I guess we were prepared. Well, back to work for Chicago! Speaking of work, if you have not heard already, rates are low, 1st time homebuyer credit ends Nov. 30th and there are a couple more changes coming down the way for FHA mortgages. I will get most the changes posted over the next few posts so keep watching for them. If you have any questions, just feel free to ask!
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