FHA mortgages are a vital part of the housing market. Since mortgage insurers of conventional loans require a 680 credit score and can be expensive, even at that score, the lower credit score requirement and lower down payment option make FHA a very important mortgage program, especially for first time home buyers. So in short, if you are in the market to purchase a new
home, or maybe even considering a refinance, don’t hesitate too long and take
the lower mortgage payment that you can get today.
Monday, November 26, 2012
FHA is about to get a little more expensive
If you are shopping for a home and plan on utilizing the
FHA’s 3.5% mortgage program, you might not want to wait too long to solidify
your purchase. FHA has announced its
plan to increase its mortgage insurance premium by .1% in 2013. Currently, FHA borrowers pay an Up Front Mortgage Insurance Premium (UFMIP) of between 1.20 and 1.50%. The other change that has yet to be
confirmed, is the talk of making mortgage insurance (MIP) permanent on all FHA
loans. Currently, if your mortgage
balance were to get to 78% of the purchase price and/or you’ve made 60 timely
payments on your mortgage, you could see your MIP fall off your loan. If the proposed change were to take place,
new borrowers would see the MIP stay on their loan for the life of that loan.
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