April 18th brings about an additional change with FHA. FHA will increase its monthly mortgage insurance premiums once again. The most recent change was less than 18 months ago.
This leads me to believe that FHA is still short on their reserve requirements and need to make it up in monthly premiums so are passing on additional costs to new buyers.
AS of April 18th, monthly mortgage insurance increases from .90 to 1.15 per month. This means about an extra $10/month in payment per $50,000 in loan amount. If you are looking at an FHA loan purchase, please call me and we can review the numbers in exact detail.
If you have an accepted offer before April 18th, you will be under the current FHA mortgage insurance. If you were delaying your purchase until after tax time, you may want to rethink that. There are many properties on the market, rates are still favorable- the time to purchase is now!
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