Our partners at Bank of America provided this update on FHA Loans:
Effective for loans with case numbers assigned after April 5, 2010, FHA will collect an up-front MIP (mortgage insurance premium) of 2.25% (up from the current 1.75%). While this increase is certainly not good news, the financial impact is less than you might expect. On a $300,000 FHA loan, for example, the increase adds $1500 to the loan balance but this increase is financed over 30 years so the increase in the actual mortgage payment is only $8.28 per month.
No one likes to pay more but it is also important that we keep the FHA insurance fund solvent. There are other restrictions coming including tighter condominium requirements and the potential for an increase in monthly MI premiums but we will save that good news for another time!
Seven Gables Real Estate
License #01727426
www.TheOCExperts.com
Direct: 714 276-7006
Fax: 714 917-2293
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As a CPA, REALTOR® and financial expert, I focus on protecting our clients financial interests in the sale.
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