Home Buying in Adams North>Question Details

Melissa Garr…, Home Buyer in Pittsburgh, PA

What are the changes that are set to occur in April with FHA loans in regards to PMI?

Asked by Melissa Garrison, Pittsburgh, PA Sun Mar 24, 2013

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John Juarez’s answer
Beginning April 1, 2013, most FHA-backed mortgages will be subject to an MIP (similar to PMI in other loan programs) increase of 10 basis points annually, or 0.10 percentage points. Simply put, that means that the monthly payment on an FHA loan will be somewhat higher that prior to this change.

Borrowers will still be able to get an FHA loan with as little as 3.5% down.

Another change of note is that FHA will no longer allow the cancellation of MIP when the loan balance has been reduced to 78% of the original balance. MIP on loans that start out at more than 90% of appraised value will remain for the life of the loan.
1 vote Thank Flag Link Sun Mar 24, 2013
Hi Melissa,

The mortgage insurance goes up in April, but you won't start paying it for the lite of the loan until June 1st. Right now, you pay for a minimum of 5 years.

Regards,
Cory
0 votes Thank Flag Link Sun Mar 24, 2013
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