Yesterday there was an announcement from HUD and it appears that FHA will be increasing the mortgage insurance premium expense for case numbers ordered after March 31st.
- For 3.5% down, the current cost is 1.00% for the “lump sum” premium and 1.15% for the monthly. After 3/31 the cost will be 1.75% and 1.25% monthly.
- On a $350,000 home, this will equate to $2,533 in additional up front premium and a $28 higher monthly payment. If my math is correct here, this is a significant hit to buyers.
Many thanks to http://brianyotz.com/about/ for the update.
If you are currently pre-approved for an FHA mortgage now would be a good time to have a conversation with your mortgage professional.