FHA Mortgage Insurance Increasing in 2013
Last week I shared with you part of HUD’s plan to no longer allow FHA mortgage insurance premiums to terminate to help improve their financial stability. This would be effective for loans guaranteed by HUD in 2013.
HUD also announced in their report to Congress, their plans to increase the MIP (mortgage insurance premiums) paid on FHA insured loans by an additional 0.10 basis points (or 0.1% of the loan amount). From HUD’s press release:
In 2013, enact an increase of 10 basis points or 0.1 percent to the annual insurance premium paid by borrowers on new FHA loans. This premium increase is expect to add $13 per month for the average borrower and will strengthen FHA’s capital position without limiting access to credit for qualified borrowers.
In the greater Seattle area (King, Pierce and Snohomish Counties), the FHA loan limit (as of today) for a 1-unit single family dwelling is $567,500. An increase of 0.1% for this loan amount would cost an FHA borrower an additional $47.29 per month.
If you are considering an FHA mortgage for your refinance, I highly recommend you do so as soon as possible while your mortgage insurance premiums may still be cancelled instead of for the life of the loan AND before the mortgage insurance premiums are increased.
If your home is located anywhere in Washington state, where I am licensed to originate mortgages, I can help you!