Unfortunately, FHA has recently announced some change to the FHA mortgage insurance premiums for all new FHA loans starting April 1, 2013. It just seems as if FHA continues to raise the mortgage insurance premiums to try to get it back in line so the program remains self funding. Unfortunately, the reason behind these changes are because current homeowners are defaulting on their payment and not paying their FHA premiums that are already due. FHA will continually keep checking the overall strength of this great program. Starting April 1st homeowners will pay 1.55% for all upfront mortgage insurance.
Streamline your FHA loan to reduced premiums amounts if you obtained your mortgage prior to June 1, 2009
One thing that is not going up is the FHA streamline refinance loans as long as you loan originated before June 1st 2009. If your FHA loan originated prior to June 1st 2009 you will get a break on your mortgage insurance premiums.
Here is a chart which helps explain the mortgage insurance premiums:
- 15-year fixed rate mortgage with LTV of 78% or less: No annual MIP required.
- 15-year fixed rate mortgage with LTV greater than 78%: .55% annual MIP
- 30- year fixed rate mortgage, all LTVs: .55% annual MIP
It’s time to beat the April 1st deadline
If your loan is already in process the chances are good that you will be lovked into the old FHA mortgage insurance premiums. It is very important to hurry up and beat these changes so you will not need to spend out unnecessary money which could be avoided. Contact Riverbank Finance today to lock in your FHA loan or FHA Streamline Refinance MIP before the premiums change!
