Homebuyers using FHA financing are going to get a surprise on October 4th, their mortgages will cost them less than it does today to close on their loan.
That's because some creative bookkeeping at HUD has spread the scheduled increase in FHA's mandatory mortgage insurance premiums over the life of the loan, and will actually reduce the up-front payment at closing from the current 1.75 percent of the loan to 1.00 percent.
However, homebuyers monthly insurance payments will go up from 55 to 90 basis points. For a $275,000 mortgage, the payment would go up about $70 a month, on a $125,000 mortgage, the payment would increase by about $27 a month.
The Government giveth, and the Government taketh away.
Call us with any questions you have relating to residential mortgages (208) 287-1717, we are always very happy to help. We specialize in home loans for first time home buyers, move up buyers, second home purchases, and resort lending. The loan products available to my clients include FHA, IHFA, VA, Conforming Conventional, Jumbo and Super Jumbo Portfolio.
Our primary markets are Ada County (Boise, Eagle, Meridian, Kuna, Star), Canyon County (Nampa, Caldwell, Middleton), and Valley County (Cascade, Donnelly. Tamarack, McCall).
