The Federal Housing supervision is going to be production some changes to the Fha loan. These changes will go into supervene on October 4, 2010. The two aspects of the Fha loan that are changing are the Up Front Mortgage insurance premium (Ufmip) and the Mortgage insurance premium (Mip) that is charged to borrowers on a monthly basis.
The Ufmip is nothing else but going to be reduced from 2.25% to 1%. This fee is taken and put into an escrow account at the Us Treasury and is distributed to Hud on a monthly basis in case the borrower defaults on their loan.
Fha Loan Changes and What They Mean For You
The Mip is going to be raised from.55% of the loan whole per year to.85% of the loan whole per year. So what does this mean for you? Well, every situation is unique so it's important to speak with a Home Loan expert in order to make sure you're getting the most literal, information for your situation. Your down cost and loan-to-value ratio will decide what your Mip cost will be. However, for a 0,000 loan, borrowers can expect to pay roughly more per month after the new changes go into effect.
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