Did you know that in mid April all new FHA loans will change?
For FHA case numbers pulled after April 17th there will be a very noticeable increase in monthly mortgage insurance. FHA will be increasing their monthly mortgage insurance fee by .25% for a 30 year fixed rate loan with a minimum down payment for 3.5%. The fee will increase from .9% to 1.15% which really doesn’t sound like much but for some it can mean they will not be able to afford the price range they once could.
The dollar impact for a $200,000 loan: $41.67 per month or $500.oo a year.
Like I said it isn’t a significant increase and to be honest if $500 a year is going to break you back then home ownership may not be the best thing for you right now. It is however another step to cover some of the massive losses we have experienced over the past 5 years or at least help ease the pain of future foreclosures.