Tuesday, February 15, 2011

FHA Mortgage Insurance to Increase April 18, 2011

For loan terms greater than 15 years; The monthly mortgage insurance  factor is raised from .90 to 1.15   for loans with less than 5% down.  Loans with 5% or more down the mortgage insurance factor is raised from .85 to 1.10

For loans with 15 years or less on the term; The monthly mortgage insurance factor is raised from .25 to .50 for loans with less than 5% down.  Loans with the 15 year term than have more than 5% down will have a monthly factor of .25

These figures going up means a higher mortgage payment. Rates are still great- the market is starting to recover and now lending once again is getting more expensive and tighter. The time to buy is NOW.

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