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West Chester & Mason Ohio Homebuyers To Face Higher FHA Mortgage Insurance Costs

March 7, 2012 by Eric Lowry Leave a Comment

West Chester & Mason Ohio Homebuyers To Face Higher FHA Mortgage Insurance Costs

Mortgages & Interest Rates In West Chester & Mason OhioHomebuying is about to get quite a bit more expensive for many home buyers in West Chester & Mason Ohio, not just first time homebuyers.  No, interest rates are not on the rise (yet).  It’s the cost of mortgage insurance that is going up.  The Federal Housing Administration (FHA) which backs mortgages that allow for smaller down payments has announced that it is increasing the cost on two types of fees that homebuyers must pay.

The increase in the mortgage insurance costs is two fold for FHA backed mortgages.  (1)  the FHA has announced that it will increase it’s annual mortgage insurance premium by .10 of a percentage point for loans under $625,000, which will now cost 1.25% of the loan amount.  This increase takes effect on April 1st.  (2) the second fee being raised is the upfront mortgage premium.  It is being raised by .75 of a percentage point, making the premium 1.75% of the loan amount.  This fee is often rolled into the mortgage.

Moral of the story… you may want to get a home under contract to purchase and a mortgage loan application submitted before April 1st if you would like to avoid these higher costs of obtaining a mortgage.  All of this assumes of course that you are obtaining an FHA backed mortgage.  If you are using a conventional mortgage to buy a home this increase does not effect you.

Filed Under: Buyers, Eric Lowry's Articles, Financing, First-time Homebuyer, Real Estate News Tagged With: Applying For A Mortgage, Buying A Home, Eric Lowry, FHA Financing, FHA Loans, Getting Preapproved, Home Mortgages, Interest Rates, Keller Williams Realty, LowryTeam.com, Mason Ohio Homes For Sale, Mortgage Insurance, Searching For A New Home, VIPHomeFinder.com, West Chester Ohio Homes For Sale

West Chester & Liberty Township OH Real Estate: Big Changes Coming to FHA Loans

February 24, 2011 by Eric Lowry Leave a Comment

Today marks the return of guest blogger Dave Scully with Evolve Bank & Trust. Dave has over 20 years as a mortgage professional in the West Chester, Liberty Township, Mason and Greater Cincinnati marketplace.

Big Changes Coming to FHA Loans Effective April 4th! by Dave Scully, Guest Blogger on RealEstate-Ink.com

All FHA 30 year loans that are assigned case numbers on or after April 11, 2011 will have an increase in the Monthly Mortgage Insurance Premium (MIP) from .90bps to 1.15bps for loans with less than 5% down.  For FHA 30 Year loans with greater than 5% down the Monthly Mortgage Insurance Premium will increase from .95 to 1.10BPS.  (BPS=Basis Points) What is a basis point?

On a loan sales price of $163,000 this will increase the Monthly Mortgage Insurance Premium by $33.  The net effect will be as if the rate is .375%-to a .50% higher in payment.

As if this wasn’t enough, effective on all FHA loans assigned case numbers after April 18th, 2001 the Up Front Mortgage Insurance Premium (MIP) on ALL FHA loans will increase from 1% to 1.25%.  This amount is always financed.

The best way to avoid the higher Mortgage Insurance Premium rates is to get out there and buy your home now!  Rates are still at near historical all time lows!  There are many great deals on homes out there! 

SEARCH WEST CHESTER & LIBERTY TOWNSHIP OHIO HOMES FOR SALE HERE!

Go out and take advantage of all 3:  (1) LOW RATES, (2) LOW HOUSING PRICES, (3) LOWER MORTGAGE INSURANCE PREMIUMS!

Filed Under: Buyers, Financing, Financing Options, Real Estate Information, Real Estate News Tagged With: Cincinnati, Dave Scully, Evolve Bank & Trust, FHA Financing, Financing A Home, Liberty Township Real Estate, Mortgage Insurance, mortgage lenders, Mortgage Preapprovals, Mortgages, Ohio, Search Homes For Sale, Search The MLS, West Chester Real Estate

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