There are less than two weeks before FHA Mortgage Insurance rates increase again! Here is a detailed chart of the new rate premiums, effective with Case Numbers ordered on or after April 1, 2013.
If you can get that case # ordered now, do it! I have a client that put an offer on a home for a short sale in August. It looks like negotiations are finally moving forward and they may be going into contract officially some time in the next few weeks. We ordered the Case Number to get it locked in at current FHA rates, in case this purchase does actually pan out (fingers crossed – they’ve been so patient!).
Another biggie with the FHA changes is that it will be required to pay the monthly MI for the life of the loan; it cannot be eliminated once you reach a certain equity threshold. That’s a huge negative, and something you can avoid if you have the ability to get your FHA Case Number ordered now, instead of waiting until April 1st or later.
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FHA Single Family Mortgage Insurance Annual Mortgage Insurance Premiums (All Loan Terms) Effective with case number assignments on or after April 1, 2013 |
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Base Loan Amount |
LTV |
Loan Term |
Purchase & Refinance Transactions (excluding Streamline Refinances) FHA 203(b) Loan Program |
|
< $625,500 |
> 95% |
Greater than 15 Years |
1.35% |
|
> $625,500 |
> 95% |
Greater than 15 Years |
1.55% |
|
< $625,500 |
< 95% |
Greater than 15 Years |
1.30% |
|
> $625,500 |
< 95% |
Greater than 15 Years |
1.50% |
|
< $625,500 |
> 90% |
Less than or equal to 15 Years |
.70% |
|
> $625,500 |
> 90% |
Less than or equal to 15 Years |
.95% |
|
< $625,500 |
78.01 to 90% |
Less than or equal to 15 Years |
.45% |
|
> $625,500 |
78.01 to 90% |
Less than or equal to 15 Years |
.70% |
|
All |
< 78% |
Less than or equal to 15 Years |
1.75%/ No Monthly* * Monthly MIP = .45 for case numbers assigned on or after June 3, 2013. |
