| Changes That Will Affect Your Monthly Payment | | | | monthly payout is. |
| As the industry changes, so do the rules. I can't imagine | | | | |
| that anyone is every completely satisfied with anything | | | | The changes coming to FHA mortgage insurance |
| that we have done in this world so far. But, I will say | | | | premiums, mean that your upfront Mortgage Insurance |
| that over the past 19 years, things just keep | | | | Premium will go down to 1%. However, the monthly |
| dramatically changing just when I think that they have | | | | insurance premium would go from .55 to .9. This can |
| settled down. Now, one of the things I wasn't sure | | | | change things dramatically. The larger the loan amount |
| about is happening in fact, and can affect you | | | | is, the bigger the dollar difference. So, to show you the |
| differently depending on your home loan. It's the upfront | | | | difference, let's use those same numbers we used |
| Mortgage Insurance changes coming to FHA. | | | | previously. When your mortgage is 1%, then your |
| | | | | mortgage insurance is .9 on a monthly basis. When |
| The changes are easy for me to understand, but you | | | | you multiply $100,000 by .009 = $900. When you divide |
| may not understand if your mortgage professional | | | | the $900 by 12 months, it equals $75 per month. So, |
| doesn't explain them to you. So, what you need to | | | | the difference in payment is $33.33. When you |
| know I will tell you right here. If you are looking to buy | | | | consider that you pay $33.33 more per month in the |
| but you have been on the fence, then the Mortgage | | | | course of 12 months it changes your outlook. You can |
| Insurance changes coming to FHA just might change | | | | see that you are paying just under $400 more per |
| your mind. First, I am going to explain to you how | | | | year, so it adds up over the life or your loan. Most |
| mortgage insurance premiums are calculated on your | | | | families have a 30 year loan, and within 5 years they |
| loan. | | | | have paid down enough into the loan to drop the |
| | | | | mortgage insurance. So, over 5 years that an extra |
| When buying a home using an FHA loan, you can put | | | | $2,000. |
| as little as 3%, with a credit score of 620 or higher. So, | | | | |
| if you are putting down 4.99% or less than your | | | | Hopefully this helps to put this in perspective. The |
| upfront Mortgage Insurance premium was 2.25%. Your | | | | changes were delayed to give everyone time to get |
| monthly would be 0.50%. So, let's say that you wanted | | | | things together, but I am sure there may be more |
| to borrow $100,000 to buy your home, and you are | | | | changes. The thinking behind this was to help the FHA |
| wanting to do a 30 year loan. Let's say in this case | | | | recover its deficit. This certainly will help, and that is a |
| that you are putting 5% down on the home. In order to | | | | lot of loans. All the new purchases coming up once |
| calculate your monthly mortgage insurance premium, | | | | that date hits will be effective. Today is the day move |
| you need to first calculate what it is upfront. So, you | | | | on it if you haven't already. |
| will look at the percentage you will pay up front, which | | | | |
| for our sake in this example is 2.25%. When you | | | | For more information, you can go to You can fill out a |
| multiply this by $100,000 by 2.25%, or 100,000 x .005 = | | | | form to get pre-qualified, or just call the toll-free |
| $500. When you divide that $500 by 12 months, it | | | | number for more information today. |
| equals $41.67 per month. So, that tells you what your | | | | |