FHA Mortgage Insurance Premium Change

Did you know that the Federal Housing Administrastion (FHA) is increasing the annual mortgage insurance premium on FHA home loans as of 4/18.  If you are buying a home, you will need to have an active loan application for the property prior to this date in order not to be hit with the increase.

What does this mean?  In simple terms a $163k mortgage with a 3.5% down payment and an anticipated interest rate of 4.875% would go from $1174.441 to $1207.41, an increase of $33 per month or over $300 per year.   For those who have worked hard to save their money to buy house, every dollar counts.

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