FHA: Increase in Upfront Premiums for FHA Mortgage Insurance

FHA’s Up Front Mortgage Insurance Premium (UFMIP) for purchases and refinances in the Arizona area will increase from the current 1.75% to 2.25%. To remain eligible for the 1.75% UFMIP Factor, case numbers must be assigned before April 5. On a $200,000 loan FHA Mortgage Loan in Maricopa County, this is an additional $1,000 cost. Beating this deadline on a purchase will also qualify you for the First Time Home Buyer Tax Credit if eligible.

SUBJECT: Increase in Upfront Premiums for FHA Mortgage Insurance
Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.

The UFMIP is commonly financed into the loan, that means that on a $200,000 loan, after closing you will owe $204,500 instead of $203,500. If you are waiting for that house to come down another $1,000 in price, maybe this increase should be considered before waiting before it is too late.

This will also affect FHA Streamline refinances also. For those that have believed that rates would fall lower just a bit more, your best option is to get your case number pulled immediately. This very well will be the right time for you to get off of the fence and get your application started before this takes effect.

ABOUT TED CANTO Ted is an experienced Mortgage Advisor for the last 13+ years and is also known for his mortgage commentary and internet workshops within the real estate community. Also known as "The Mobile Mortgage Pro", Ted has honed the power of the smart phone, laptop, tablet computing, text, email and social media to ensure that he is always accessible to his clients' “wherever, whenever” to meet their needs. Ted has helped thousands of families finance their new home or refinance their current home in the Arizona and California market. Call, text, or email him to discuss your home financing @ 480.650.8602 or ted@tedcanto.com