What’s IN and what’s OUT with Spring Texas home buyers
March 4, 2011
Credit Do’s and Don’ts
March 9, 2011
It was just last October 8th when the FHA increased the monthly mortgage insurance premium from 0.55% to 0.9% and now on April 18th, 2011, the FHA is hiking the premium again. This time the mortgage insurance premium will increase to 1.15% for 30 year loans with a Loan to Value (LTV) ratio of greater than 95%.
How much is the latest FHA change going to increase Spring Texas home buyers monthly payments? 
Let’s say you’re buying a $150,000 house which gets you a nice house in Spring Texas and your down payment was 3.5% (the minimum down payment on a FHA loan) and your loan was for 30 years, your monthly mortgage insurance premium will increase $30.16. That’s a 28% increase.
Put another way …. The $30 increase in the FHA monthly mortgage insurance premium just decreased your buying power by $6,000.
How do you avoid the increase in the FHA monthly mortgage insurance premium? You need to be in contract on a Spring Texas home before April 18th. You don’t have to close by April 18th. You only need to be in contract.
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