FeedbackWith the flexible credit requirements and low down payment, an FHA loan is quickly becoming one of the most popular loans for new buyers. The loan comes in a 30 or 15 year fixed, just like conventional loans, but the Federal Housing Administration insures the loan amount to make buyers more attractive to lenders.
But if you’re shopping for a house right now or planning to refinance, and you’re considering an FHA loan – don’t wait too long or your upfront mortgage insurance premium will go up.
FHA Mortgage Insurance Premiums Rising
FHA loans come with mortgage insurance premiums that are built in over the course of the loan. When you close, there’s also a one-time upfront mortgage insurance premium due at closing. FHA is now increasing this upfront cost by 0.50% from 1.75% to 2.25%.
How much does this equate to?
Well, on a $200,000 loan, this is an increase of $1000! So if you’re looking for a home, and planned on getting an FHA loan, don’t procrastinate, as Quicken Loans clients need to apply for an FHA loan by March 31st, 2010 to qualify for the current upfront mortgage insurance premium.
Don’t wait and pay more for your FHA loan. Get started today or your wallet will hate you.
Related posts:
- Paying Your Taxes and Insurance Through Escrow
- Deducting Private Mortgage Insurance from your Taxes
- Buying a House in a Hurry: the First-Time Home Buyer Tax Extension
Tags: Federal Housing Administration, FHA Loans, MIP, Upfront Mortgage Insurance Premium
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