Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

Get My Mortgage App!

Enter you number and receive via text or scan the QR code below...

Question from a reader: FHA Rates to increase?

“I understand that on April 1, 2012 the FHA Interest rate will increase?”

No one can tell for sure what interest rates on any loan, FHA included, will be on any day. Interest rates for pretty much every type of loan fluctuates daily (sometimes more than once a day).

You may be referring to the FHA Mortgage Insurance premium… This is changing on April 9th and is going to increase; a.) The Up Front portion of FHA’s mortgage insurance premium by 0.75%. The Up Front MIP is generally financed into the loan, spread out over the entire term of the loan, and doesn’t have much of an effect on one’s payment, but it will increase most people’s loans by a least a few bucks. b.) the Annual or Monthly MIP is also going to increase by 0.10-0.15% depending on their loan scenario, and by another 0.25% for those with loan amounts that exceed $625,500.

This is going to increase every FHA borrower, that has their FHA case number pulled after April 9th, monthly payment by a bit. Quite a bit in some cases. But FHA is doing this to keep the fund solvent and ensure that FHA loans are always available for those that need them. They are still the best loan for many people and will be the only loan for many people for quite a while.

Sincerely,
Greg

Innerwork Mortgage
Roseville, CA

2 comments to Question from a reader: FHA Rates to increase?

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>