Beginning April 1st, 2012 FHA will be raising their upfront Mortgage Insurance. You may be asking yourself 'how does this effect me'?

Here is a scenario:

Your current loan approval amount $150,000 FHA

Old Monthly MI = 1.15% = $143.75 Monthly MI

New Monthly MI = $1.25% = $156.25 Monthly MI

Old Upfront MI = 1% or $1500 based on above loan amount (added to loan amount)

New Upfront MI = 1.75% or $2625 based on above loan amount (added to loan amount)

This means that you would qualify for about $5,000 less on your mortgage with the new increase beginning April. Your loan amount would decrease to $145,000.

This reduction may be signficant to a buyer trying to max out their purchase, which happens all the time, by the way. If you feel you this may effect you, please give us a call at (505) 350-8184.

Posted by NMWelcomeHome Team Associates (505) 886-1432 on
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Woah! This is not the best time for buyers' purchasing power to be reduced. I hope buyers will take heed and get their transactions in order before the rapidly approaching deadline. Thanks for the great info, Carlos! :)

Posted by Jolenta Averill on Thursday, March 15th, 2012 at 9:53pm

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