FHA mortgage insurance premiums are going up

On January 21st, 2010 HUD announced that the FHA mortgage insurance premiums will be increasing.  The changes never seem to end in the mortgage industry right now- everyday changes happen and costs continue to go up.  Here is a breakdown on what to expect:

  • For all new FHA case numbers assigned on or after April 5th, 2010 FHA will collect an upfront mortgage insurance premium of 2.25%
  • This is an increase from the current 1.75%
  • This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.

So what does that mean to you- the borrower?  It means that if you have been thinking about refinancing now is the time to act.  Make sure to get your lender to pull your case number before April 5th otherwise you will pay more in the long run.  Even with the increase in premiums, FHA will still remain the main option for most refinance candidates who want to great rates and good terms. 

A lot of people have been on the fence of whether to refinance or not and this is one good reason along with the fact that rates are all time lows and they are scheduled to start increasing- so call now and talk to one of our knowledgeable mortgage consultants who can help you on your way to saving money!

Village Home Mortgage – 888-790-0292

 

 

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