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  • FHA Mortgage Insurance Rates on the Rise. BAD news folks!

    If your clients are considering buying or refinancing a home, today may be the day. The Federal Housing Administration (FHA) will soon increase mortgage insurance premiums on the FHA home loans, increasing costs to your clients!

    Dates to keep in mind:
    April 9th, 2012. An increase of 0.10% in the annual mortgage insurance premium (MIP), which is broken down into monthly payments, for FHA loans under $625,500 this would raise the fee from 1.15% to 1.25% of the total loan amount.

    April 9th, 2012. An increase the FHA's upfront annual mortgage insurance premium (UFMIP) from 1% to 1.75%.

    June 11th, 2012. An increase of 0.35% to the MIP for FHA loans over $625,500, raising that fee to 1.5% of the total loan amount.

    What do you think about this? Do you think it is going to help the real estate market, or hurt the real estate market??
    1
    Hurt the housing market
    100.00%
    1
    Help the housing market
    0.00%
    0
    Will not impact the housing market
    0.00%
    0

    The poll is expired.

    Kim Knox
    Principal Broker, Owner, ABR, GRI, PME, A-REO, REDCpro,
    541-899-7222
    Licensed to conduct Real Estate in the State of Oregon

  • #2
    I wrote a blog post a while back and you can find it here on the ramifications of MI factors on new FHA loans, including streamlined fha loans. This obviously hurts the FHA market as a whole, but somebody has to pay the freight regarding losses on bad loans and unfortunately it's the new borrower who holds the bag. The good news is that the old FHA loans originated prior to May 31, 2009 are getting an MIP factor of .55% when it comes to streamlines. This really helps get those borrower's who are carrying the lower MIP into new loans. Even with the increase in MIP and UFMIP the FHA loan is very good to certain borrower's, allowing them to go to higher LTV's with lower credit ratings with no impact on the overall pricing of the loan. The loans will be more expensive to get now, and the monthly payment will increase, but some people have no other option than the FHA loan, and if it means that they have to borrow less money now as a result of the new MI rules I still feel it's better than no options at all.
    Jesse Gonzalez, Broker/REALTOR®
    Archer Realty
    DRE License#01855372
    NMLS MLO#278103
    707-583-3666

    Comment


    • #3
      I think this kind of sudden changes can make some negative effects on real estate market but these negative changes can’t go long. As the time go on market conditions becomes normal, just like before.



      Lisbon apartments

      Comment


      • #4
        Rates should not be increased as they baddly affect the markets. Low rates means more investment and high rates means low investment. Why every Govt has been increasing Rates day by day? it should not be happend. Home is a desire of everyone so there must be some relaxation on home loan. Property investors might also be little worried about it.
        Gold Coast business coach
        Last edited by mark.1; 10-25-2012, 12:49 AM.

        Comment


        • #5
          Re: FHA Mortgage Insurance Rates on the Rise. BAD news folks!

          UPDATE ON FHA MI AND PROGRAM CHANGES:
          I wanted to pass along the newest round of changes coming down the pipe for FHA loans. I've been getting as many streamlines in the pipe now with case numbers assigned before the new changes take effect.
          For all mortgages regardless of their amortization terms, any mortgage involving an original principal obligation (excluding financed Up-Front MIP (UFMIP)) less than or equal to 90 percent LTV, the annual MIP will be assessed until the end of the mortgage term or for the first 11 years of the mortgage term, whichever occurs first.

          • For any mortgage involving an original principal obligation (excluding financed UFMIP) with an LTV greater than 90 percent, FHA will assess the annual MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first.



          All MIP's in this table are affective for case numbers assigned on/or after April 1, 1013
          Term ≤ 15 Years
          Base Loan Amt. LTV Previous MIP New MIP
          ≤ $625,500 ≤ 95.00% 120 bps 130 bps
          ≤ $625,500 > 95.00% 125 bps 135 bps
          > $625,500 ≤ 95.00% 145 bps 150 bps
          > $625,500 > 95.00% 150 bps 155 bps
          Term ≤ 15 Years
          ≤ $625,500 78.01% - 90.00% 35 bps 45 bps
          ≤ $625,500 > 90.00% 60 bps 70 bps
          > $625,500 78.01% - 90.00% 60 bps 70 bps
          > $625,500 > 90.00% 85 bps 95 bps
          The new annual MIP for these loans is effective for case numbers assigned on/or after June 3, 2013
          Term ≤ 15 Years
          Base Loan Amt. LTV Previous MIP New MIP
          Any Amount ≤ 78.00 % 0 bps 45 bps
          Jesse Gonzalez, Broker/REALTOR®
          Archer Realty
          DRE License#01855372
          NMLS MLO#278103
          707-583-3666

          Comment

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          Kim Knox Principal Broker serving Jackson County Oregon. Find out more about Kim Knox

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