FHA Loan Costs on the Rise

fhalogoOn June 1st, 2013, most FHA purchase and refinance loans will carry monthly mortgage insurance (MIP) for the LIFE OF THE LOAN.  

The Federal Housing Administration has changed its policy allowing loan holders to cancel the mortgage insurance premiums once the principal balance of the loan reaches 78% of the original balance.  NO MORE!  This is an expensive and important change that could cost you tens of thousands of dollars over the life of the loan.  This change affects both new loans and refinances.

If you are planning on purchasing using an FHA loan, you should try and get under contract in May!

Moving forward, FHA mortgages will remain, although more restrictive, a great option for low down payment home buyers!

Contact us today for more information, or to get the process started!

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