On October 4th, 2010, FHA will be changing the Mortgage Insurance Premiums that they charge to borrowers using FHA financing.
- decreasing the Up-Front Mortgage Insurance Premium from 2.25% to 1.0
- increasing the monthly Mortgage Insurance from 0.55% to 0.85% – 0.90% annually
- the monthly Mortgage Insurance change will increase a borrower’s monthly payment approximately $22 per $100,000 borrowed at today’s interest rates. Please be sure to share this with your buyers.
- Case numbers must be pulled before October 4th to take advantage of the lower monthly mortgage insurance payments before the new ones are implemented.