Beginning April 18, 2011, the Federal Housing Administration (FHA) mortgage insurance premium will be increased on all 30 year and 15 year loans. The amount of the increase is a quarter of a percentage point (.25). This will in turn be an average cost to new borrowers of about $30 per month.
FHA says the increase is necessary to maintain the solvency of the Mutual Mortgage Insurance Fund (MMIF). It is estimated that this increase will contribute around $3 billion annually to the MMIF. The increase may have borrowers looking to obtain mortgages in the private sector. FHA loans will cost a borrower almost twice as much for mortgage insurance on a 30 year loan as compared to a non-FHA mortgage.
If you are looking to buy a home with an FHA mortgage, now is the time to apply before the increase happens. There are plenty of great deals on homes in Southwest Florida. Get your piece of paradise while the picking is still good.
For information and questions on FHA loans, go to their web site at: http://www.fha.com/
Tammy Hayes, Sandals Realty, Punta Gorda, FL firstname.lastname@example.org