Beginning on April 1, 2012, the FHA will raise by 0.75 percentage points to 1.75%, the upfront insurance premiums that borrowers must pay when they take out an FHA backed mortgage. This means that borrowers with a $250,000 mortgage will be paying an additional $1875 in upfront loan costs.
Borrowers also pay annual insurance premiums when they have an FHA backed mortgage and those fees will also increase by .10 percentage points. This equates to a $250 annual increase in mortgage insurance premiums paid for a loan size of $250,000.
These changes will not affect FHA mortgages obtained before the deadline of March 31, 2012.
Is an FHA Loan Right For Me?
That’s a great question. The truth is that it depends. Since your financial and mortgage situation is unique, it’s hard to say without knowing the details of your situation and what your long and short term goals are.
For a free consultation or rate quote, please call us or request a fast rate quote. We can help you understand if an FHA loan will fit your needs and we can put together a customized mortgage strategy based on your needs and goals.