Are you planning to buy a home this spring and get an FHA Mortgage?
Act fast, because mortgage insurance premiums are increasing! Annual, Up-Front Mortgage Insurance Premiums Increasing
The Federal Housing Administration is raising mortgage insurance premiums in an effort to help protect the agency’s capital reserve and strengthen their insurance fund.
How does this affect YOU, the home buyer?
- Up-front mortgage insurance premiums (also known as “MI” or “PMI”) are being increased to 1.75%…..so your costs at closing will increase by about 20%
- For loans less than $625,000, monthly PMI will increase by .10% ….. so your monthly mortgage payment will increase
Please note that the higher rates will apply to all the buyers who APPLY for a loan on or after April 1st.
If you can find your “dream home” this month, you will be able to avoid the additional closing costs and slightly higher monthly payments. It’s a BIG savings over the next 10 to 30 years!
If you have questions about the changes or are thinking about starting your home search, please don’t hesitate to call us at 404.721.3001.
Happy House Hunting,
As we all know, the industry is ever-changing and the best way to help our customers save money is to keep everyone informed.
To avoid the increased premiums, case numbers need to be assigned by March 30th! If there is anything we can do to help your prospective buyer make the next move, let me know!