FHA Insurance Rate Increase – April, 2011

FHA Mortgage Insurance increase in effect April 18, 2011.

Old Rules (In effect till April 18):Upfront MI = 1% (added to loan amount)
Plus Monthly MI = .90% (paid monthly in house payment)

New Rules (In effect after April 18):Upfront MI = 1% (added to loan amount)
Plus Monthly MI = 1.15% (paid monthly in house payment)

Example of a $250,000 loan
Old New
187.50 Monthly MI 239.58 Monthly MI

**That’s an increase of $52 per month. (Almost like a loss of $9,800 in buying power).

Special note: FHA has slightly lower mortgage insurance fees for clients putting 5% down or selecting a 15 year fixed mortgage. Call us for details.

Kimberly Terry and Cathy Pizzini, Team Evergreen
Senior Lending Managers
Evergreen Home Loans
2265 1st Ave South
Seattle, WA 98134
206.774.7595
Fax 206.774.7509
http://www.teamevergreen.net (web and blog)

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