About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under FHA streamlines, Updates on FHA short refi program - HOPE loan qualifications

All FHA loans started on Monday April 18th, 2011 or later will have higher monthly mortgage insurance fees than loans started the previous Friday. The FHA is raising its monthly mortgage insurance fees by 0.25% across the board beginning then. The fees will not be retroactive but will apply to all new FHA refinances or purchase loans.

Here is what a 0.25% mortgage insurance fee would mean:

On a $150,000 30 year fixed FHA loan the monthly insurance fees will cost an additional 0.25% per year. That means the insurance fee would be $31.25 per month higher than the same FHA loan started the previous week. ($150,000 x .25% / 12 = $31.25). On a $250,000 FHA loan the mortgage insurance fees would jump $52.08 per month.

So these fee hikes can be significant and the larger the loan the more of a difference the change will make. If you have considered an FHA loan or if you already have an FHA loan you would like to streamline to a lower rate it would be wise to at least start an FHA loan application by Friday April 15 in order to avoid mortgage insurance fee hike. Contact in the sidebar for details on how to get started.

Comments (0) Posted by G.R.A. Admin on Thursday, April 7th, 2011

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