PAGE TITLE HERE
FHA's Mortgage Insurance....
Whether you know it, love it, hate it, or never encountered it, FHA
loans have mortgage insurance (that mortgage insurance is a factor
in your debt to income ratio). Currently on an FHA loan you have a low
down payment and reasonable mortgage insurance.. For example, if
you were to put down 3.5% on a new fha mortgage and you were
calculating the MI payment you would take your purchase price, lets
use 100,000 to make things easy, and take away your down payment,
3500. That gives us 96,500, with FHA's current guidelines you
calculate your MI payment by taking your base loan amount and
multiply it by .0055, which gives you your annual obligation, divide it
by 12 to get your monthly MI payment. In October this calculation is
raised to .0090 of the loan amount, close to double!!!!!
Current calculation on 100k purchase price your monthly MI will be
44.23/mo
New calculation (October) on 100k purchase price your monthly MI will
be 72.38/mo
Imagine this on a bigger loan amount!!
If you are on the borderline with your debt to income ratios, you
better try to find a house before October 4th.
If you want to look on the bright side, the upfront mortgage insurance
premium that is financed into your loan (FHA's upfront fee).... is being
lowered from 2.25% of your base loan amount to 1% of your loan
amount.
If you need a more detailed explanation or want me to run examples
for you, just shoot me an email or give me a call!
Whether you know it, love it, hate it, or never encountered it, FHA
loans have mortgage insurance (that mortgage insurance is a factor
in your debt to income ratio). Currently on an FHA loan you have a low
down payment and reasonable mortgage insurance.. For example, if
you were to put down 3.5% on a new fha mortgage and you were
calculating the MI payment you would take your purchase price, lets
use 100,000 to make things easy, and take away your down payment,
3500. That gives us 96,500, with FHA's current guidelines you
calculate your MI payment by taking your base loan amount and
multiply it by .0055, which gives you your annual obligation, divide it
by 12 to get your monthly MI payment. In October this calculation is
raised to .0090 of the loan amount, close to double!!!!!
Current calculation on 100k purchase price your monthly MI will be
44.23/mo
New calculation (October) on 100k purchase price your monthly MI will
be 72.38/mo
Imagine this on a bigger loan amount!!
If you are on the borderline with your debt to income ratios, you
better try to find a house before October 4th.
If you want to look on the bright side, the upfront mortgage insurance
premium that is financed into your loan (FHA's upfront fee).... is being
lowered from 2.25% of your base loan amount to 1% of your loan
amount.
If you need a more detailed explanation or want me to run examples
for you, just shoot me an email or give me a call!
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
 |