FHA Incentives to Refinance
President Obama announced a new major FHA change last week that generated a lot of press and has a lot of substance. Home owners who purchased prior to May 31, 2009 using FHA financing will be allowed to refinance at an up-front mortgage insurance (MIP) factor of only .01% and an annual MIP factor of only .55%. Note in segment below that these factors are increasing by significant amounts in just a few weeks so this will equate to HUGE savings for any eligible home owner. This is a big deal equating to a savings of $100 a month on a $150k loan!
FHA Incentive to Finalize Contracts By April 6th
As announced last week, effective with all case numbers assigned on or after Monday, April 9th (originally reported as Apr 1st), FHA up-front mortgage insurance (MIP) is increasing from 1% to 1.75% and FHA monthly MIP is increasing from 1.15% to 1.25%. These increases will add $11 to a buyer’s payment on a $100k purchase, $17 a month on a $150k purchase, and $23 a month on a $200k purchase. This is not great news for the FHA buyer but creates quite an incentive for the home to be selected, contract finalized, and the FHA Case # ordered by Friday, April 6th.
This entry was posted on Wednesday, March 14th, 2012 at 8:30 am. and is filed under Feed, FHA, Mortgage Insurance, Mortgage News, News & Reports, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.