The Cost of Ownership goes up for FHA Homebuyers

On February 14th, 2011 HUD sent out Mortgagee Letter 11-10 in order to ensure that the FHA Mutual Insurance Fund will remain financially sound. Beginning April 18th, 2011 all FHA mortgages will see a 25 basis points increase to their monthly mortgage insurance premium. Here is what it means for FHA borrowers that don’t have FHA case #’s.

Loan Information Prior to April 18th April 18th and beyond
Sales Price $163,000 $163,000
Minimum Downpayment (3.5%) $5,705 $5,705
Mortgage Amount w/o MIP $157,295 $157,295
FHA MIP Monthly Payment $118 $151
Difference in Monthly Payment $0 $33
Yearly Difference in Payment $0 $396

That’s right… an increase in your payment that you have no control over. Do you have your FHA Case #?

Ricky Beach
Managing Broker/Realtor
Renown Real Estate Services
(775) 750-1437
Posted in Educate Yourself, For Buyers, News and tagged , , , , , , , , , , , , .

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