New Mortgage Insurance Changes From FHA
Filed under: The Temecula/San Diego Market
I just received final word on the dates for the new mortgage insurance changes coming on all FHA loans. We have until April 18th to register new loans and avoid the .25% increase in the monthly mortgage insurance premium on FHA loans.
What does the change mean for our clients? For clients with a $250,000 mortgage, the monthly mortgage insurance payment will increase just over $52 per month on April 18th. All else being equal, your buyer would be able to buy $10,000 more house for same $52 before the increase.
What does the change mean for YOU? This is a great opportunity to get the fence sitters off the fence and on to signing a purchase contract. This is a tangible change that all active shoppers should be aware of. If buyers completely understand what the change means to them, it is very likely to light a fire.
Please don’t hesitate to call me with any questions or to run some numbers on a specific scenario. Let’s see if we can get some of the fence sitters into contract.
Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316