With the new changes to FHA financing this year, I want to update you on what this will mean for you and the action you will need to take. There are some important dates to pay attention to.
As of April 1, 2013, Mortgage Insurance premiums will be going up to 1.35% from 1.25% on a 30 year fixed rate loan for all case numbers assigned on or after this date. The only exception to this premium increase is a loan term less than 15 years that has a loan-to-value that’s less than 78%.
All FHA loans assigned on or after June 3, 2013 will now have their Mortgage Insurance premiums collected for the entirety of the loan. Prior to this, mortgage insurance would drop after you reached 78% of the value at the time you took out the loan. So in the future the only way to get rid of your mortgage insurance would be to refinance. With rates likely to be higher in the future, you would have to refinance to a higher rate if you wanted to get out of paying mortgage insurance.
If you currently have a FHA loan, now more than ever is the time to refinance or move. You need to take action and contact me today before getting stuck with a higher MI premium for the duration of your loan!
Please let me know right away if I can assist you with this matter, as June is right around the corner! Call me at 262-696-5045 or email me.