FHA Mortgage insurance will increase by 25 basis points per year on April 18, 2011. For instance, on a $200,000 loan, the increase will add $500 to the annual cost of home ownership for FHA borrowers.
The increase will apply to new purchases and refinances but existing homeowners will NOT be affected.
If you are currently in the market to buy however you can beat this increase if you act quickly.
No, you don’t have to sign a contract tomorrow. Instead, you simply need to fill out a mortgage application and have your loan officer file for an FHA Case Number.
As long as you have a FHA Case Number assigned by April 18, 2011 you will not be subject to the increase.
Questions? Give me a call at 703.927.4554 and let’s see what we can work out.