If you are on the fence about buying a home, now is the opportune time to secure lower mortgage insurance on an FHA home loan. As part of President Obama’s budget for fiscal year 2012, loans that are insured by FHA will have a higher mortgage insurance cost starting April 18, 2011. The new premium structure will place an increase on the annual mortgage insurance amount of 0.25 percent on both 15 and 30-year loans. The mortgage insurance premium that you pay upfront will not change and will stay at 1.0 percent.
For a $275,000 loan, this change creates an extra $687.50 per year or $60 each month. Since we were forewarned about this rate increase, make sure you act fast because you could have a lower purchasing power because of these increases.
Please give me a call to learn about some mortgage lenders in the Metro Denver area that would be glad to help you.