Tuesday, September 28, 2010

FHA loan costs going up Oct 4, 2010

Image ID 1083425 by StockExchange user svilen001 (image credit, StockExchange user svilen001)

There are  changes coming to the FHA's upfront and annual mortgage insurance premiums which are effective on all case numbers obtained October 4, 2010 and later.

The costs of the upfront mortgage insurance premium (UFPMI) and the annual mortgage insurance premium (PMI) are going up. 

In plain English, it’ll be a little more expensive upfront to get an FHA mortgage after October 4, and the monthly payment will be a little higher too. For more technical info, the Mortgage Porter blog has a great run-down on the increase in FHA mortgage insurance premium costs.

If you’re already mortgage and home shopping, you should consider getting your FHA loan started before Friday, October 1. If you’re not already shopping, don’t run out and start just because of this. Just like the $8,000 homebuyer tax credit from earlier this year: don’t buy because of it, but if you’re buying anyway, act now to take advantage of it.