FHA will change their mortgage insurance premiums on October 4, 2010. There has been a lot of doom and gloom published about the impact of these changes but when you compare present vs. future, the changes are actually very minor. All FHA loans will continue to have 2 forms of mortgage insurance, the Upfront Mortgage Insurance Premium (UFMIP) and Monthly Mortgage Insurance. Currently FHA charges 2.25% of loan amount UFMIP (added onto the loan) and .55% paid monthly. The new system will actually lower the UFMIP to 1% of the loan amount while increasing the monthly premium to .9%. For example, under the old rules, a $100K loan amount would end up at $102,250 after adding the UFMIP and would have a monthly Principal, Interest, and MI payment of $564/month. Under the new rules, a $100K loan amount would end up at $101,000 after adding the UFMIP and would have a monthly Principal, Interest, and MI payment of $569/month (only $5/month more). These amounts are linear so you can simply double these numbers for a 200k loan amount, triple them for 300k, etc. FHA still requires a 3.5% down payment up to the max loan limit of $390,000.
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Interest Rates as of 8/20/2010 Rates based on a 200k Primary Residence Purchase (or a no cash out refinance), 720+ Credit, Full Doc Income Verification, paying one "point." Please note, this information is intended for Real Estate Professionals. 80% 30 year Fixed = 4.125%
95% 30 Year Fixed = 4.25% (Requires PMI)
80% 15 Year Fixed = 3.75%
96.5% FHA 30 Year Fixed = 4.25% (Requires MI)
100% USDA/Rural 30 Year Fixed = 4.75% (No PMI required)
100% VA 30 Year Fixed = 4.5% (No PMI required)
80% 5 Yr ARM = 3.25%
70% 5 Yr Jumbo ARM up to $1M = 4.875%
80% 30 Year Fixed Jumbo up to $1M = 5.75%
Refinances up to 125% of appraised value are available |
Please feel free to call or email for prequalifications, LSR's, and any financing questions that you have. Senior Mortgage Consultant |
