Georgia FHA Fee’s Going up Again

It was just announced by HUD that they are increasing the FHA monthly mortgage insurance, again.  This will be the second time in less than a year.  The upfront mortgage insurance premium will remain the same at 1%, but the monthly mortgage insurance premium (MIP) is increasing from .90 to 1.15.  This is another considerable increase in a short amount of time, especially if you remember the MIP was .55 in September of 2010.

FHA claims the increase is necessary to bolster their capital reserves, but many question if this move is really needed.  So, what does this mean to the average Georgia FHA customer?  It means your payment is going to be higher if you don’t act fast.  Here is an example-  You are getting a $200,000 FHA loan.  The monthly mortgage insurance factor is currently .90, so $200,000 x’s .009 is $1,800 divided by 12 is $150 per month in MIP.  When the factor goes to 1.15, MIP goes to $192.  Forty-Two dollars more a month, $504 more a year!  Less than 6 months ago, it would have been $92 a month.  Gee, thanks HUD!

In many cases, $42 a month can mean the difference between you qualifying for a mortgage or not.  $42 can effect your qualifying ratios.  You will need to act fast to avoid the increase.  Call me now to find out how.

Atlanta FHA 203k Georgia Credit Repair

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