One of my realtor friends told me today that FHA is increasing private mortgage insurance by 250% on June 3rd. That means on a $250,000 home you'd be paying $5800 annually instead of $2300 annually if you purchase before June 3rd. OUCH!!
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What the??? Are you serious!!! Dang it!!!
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So happy that we completed our purchase recently!
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Ah. I hope my house sells soon in case we do have to get another FHA loan for our next house!
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Whoa, that is insane!
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Hold up...say that again? So if you have an FHA loan with PMI, it's going to be going up as of June 3rd?
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Oh my gosh. We have pm I on a conventional loan. It's going up if you buy after June 3??
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As if PMI wasn't bad enough. Ouch.
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is that for existing FHA loans carrying PMI - or only new purchases after 6/3? yikes!
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FYI --- just saw this online, a little more info:
Annual mortgage insurance premiums will rise by 0.10 percent for most new mortgages and 0.05 percent for loans of $625,500 or more.
In addition, homeowners with FHA-backed mortgages will be required to continue paying the premiums, based on the unpaid balance, for the life of the loan. Premiums no longer will be canceled when a homeowner has repaid 22 percent of the loan's principal.
Down payment requirements for loans of more than $625,500 will increase. Instead of the current 3.5 minimum down payment, borrowers will have to put down 5 percent.
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@hellobeeboston: So...we have an FHA loan (from Nov 2010) and were planning to call and have an appraisal done to drop our PMI (since our home value has significantly increased...does that mean it will no longer be dropped? Or are these changes for new loans only? - Sorry I know you aren't the expert, just wondering if you got a sense from what you read...
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wow, this sucks. guess we won't be buying ANY time soon..
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@Mrs D: I'm not 100% sure. You may want to call your mortgage broker to ask... but you will probably want to get your appriasal & re-fi done before these changes if you're worried....or switch to a conventional loan if you can? wish I knew! sorry!
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@2PeasinaPod: The way it was explained to me from a broker was only on new purchases. If you've purchased prior to 6-3-13 you're in the clear. She was warning us to hurry up and buy
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Just FYI, I emailed my mortgage broker this AM and he confirmed that the changes do not effect existing FHA loans! Whew!
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@hellobeeboston: no way!! I don't want to pay PMI forever!
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@HLK208: eeek, i know! and maybe you won't have to? I could only get vague details online, i'm sure a mortgage broker could tell you more. you may only have to pay PMI over $625K?
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Eeek!!
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17 comments