Politics & Government
PMI to Increase on FHA Loans
A loan for $100,000 will see a monthly PMI increase from $125 to $135 a month.
Many homeowners - and potential homeowners - are unaware that the Federal Housing Administration (FHA) has made some changes to the fees charged for monthly Private Mortgage Insurance (PMI) - and they could affect you.
Read the FHA January 31 Mortgagee Letter 2013-04 outlining all the changes attached to this article as a PDF.
Patch blogger Joe Dziewulski writes that both up front and monthly PMI premiums are going up. The Up Front Mortgage Insurance Premium (UFMIP) went from 1.10 percent to 1.75 percent last year.
Find out what's happening in Holly Springs-Hickory Flatfor free with the latest updates from Patch.
Beginning April 1, 2013, "FHA loans with 15 and 30 years fixed interest rate will see an increase of 1/10th of 1%, or $10 per $100,000 borrowed," Dziewulski writes.
That means a loan for $100,000 will see a monthly PMI increase from $125 to $135 a month.
Find out what's happening in Holly Springs-Hickory Flatfor free with the latest updates from Patch.
The other big change affecting homeowners is a monthly PMI for the duration of the mortgage on FHA loans beginning June 3, 2013.
Up until now, a borrower with less than 10 percent down could drop the premium as long as they had at least 22 percent equity in the home.
Keep up with Holly Springs-Hickory Flat Patch news by subscribing to our newsletters and following us on Twitter and Facebook!
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.