New FHA Mortgage Insurance—not a big deal

Posted by Suzanne Hunn & Associates on Wednesday, February 13th, 2013 at 3:53pm.

Although it would be appropriate if FHA made their new motto, “Making homes less affordable,” due to over doubling of monthly mortgage insurance premiums in the past 2 years.  The most recent changes, which take effect on April 1st of this year, are doing very little to negatively affect borrowers.  The new change actually adds just $8.33 per month per $100,000 borrowed.

The biggest change is that the mortgage insurance is on for the life of the loan. Now before you let this get you too riled up, currently FHA loans the mortgage insurance doesn’t automatically drop off for about 9 years anyway. Most people don't typically keep their home that long more or less their actual mortgage.  So, although paying more is not better, this single change is not a very big impact from the last change 

Sean Zalmanoff

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