On April 1, 2013 and June 3, 2013, the Mortgage Insurance part of your FHA loan will be undergoing changes. What are these changes exactly?
- On loans processed after April 1, rates will increase from 1.25% to 1.35%
- On loans processed after June 3, the monthly MI will remain part of the payment for the entire term of the loan
With these changes on the horizon, what are the practical implications for the home buyer?
- Buyers may need to pay up to an extra $300/month in order to reach 80% of the LTV of the loan (when the MI would no longer be in effect)
- First time home buyers who plan to refinance or sell within 5-9 years may not be greatly affected by this change because of the short time period
- Conventional PMI companies are loosening their criteria and other programs are becomming available as good substitutes to the FHA
If you have more questions about the changes, or you are unsure if or how the changes will affect you, call Lang Premier Properties to speak to a knowledgeable agent.
Lang Premier Properties is home to a leading Oakland County Short Sale Realtor. Specializing in all aspects of real estate including Royal Oak, MI short sales, foreclosures and working with home buyers and sellers with Macomb County Luxury homes. When you hire Lang Premier Properties, whether you are purchasing or selling Metro Detroit Real Estate, you can rest assured that you are in good hands.