Wednesday, May 8, 2013 - Article by: Joe Metzler, MLO. NMLS #274132 - Mortgages Unlimited, Inc -
FHA Loans More costly after June 3, 2013
Minneapolis, MN: FHA loans are having another change starting June 3rd, 2013. The change comes in two areas:
1) Monthly mortgage insurance is being added to some loans that previously didn't have it. For the vast majority of FHA loans, this is a change that will effect next to nobody, as most FHA loans have mortgage insurance. For example, if you had a 15-yr FHA loan, and you put at least 22% down, you currently wouldn't have PMI. Under the new rules, you will.
2) FHA mortgage insurance, which currently goes away once your loan reaches 78% loan-to-value, will now be on most FHA loans for the entire term of the loan. Here is a quick breakdown of the new mortgage insurance guidelines:
FHA Mortgage Insurance (PMI) CANCELLATION - ALL FHA loans after June 3, 2013
While this sounds terrible, two items jump to my mind:
As always, contact a local LICENSED mortgage professional to assist and answer questions. Don't assume.
Didn't find the answer you wanted? Ask one of your own.