Up-front Premium – 30 year mortgage
- Existing Up-Front MI premium (financed into the loan) - 1% of loan amount
- New Up-Front MI Premium effective April 9th - 1.75% of loan amount
Monthly MI – 30 year mortgage
- Existing Monthly MI rate - 1.15% assessed annually
- New Monthly MI rate effective April 9th - 1.25% assessed annually
On a $200,000 home purchase, under the existing structure, the payment (excluding property tax and insurance) on a 30 year fixed rate loan with an interest rate of 3.75% would be $1088/month. Under the new plan effective April 9th, the payment will go to $1110/month.
So on a $200,000 purchase; it will cost you $22 more a month for an FHA mortgage AFTER April 9th.
The good news is the required down payment will still be the same. In this example, that would be $7000 required down. Don’t forget that if you are a 1st time homebuyer, you may qualify for help with down payment, like the FHLB or the Maryland Mortgage Program, just to name a couple.
There are different FHA mortgage insurance rates when the down payment is greater than 5%, and also for 15 year mortgages. If you would like a breakdown of these rates and how they may affect financing, don’t hesitate to ask the Stuart Epstein team to provide you with the numbers.
Also, if you have 5% to put down, you may want to ask us to help you compare the costs and benefits of Conventional financing as an alternative to FHA. Depending on credit and other factors, you may save a ton on money by knowing ALL of your options!
Lastly, stay tuned for exciting refinancing benefits coming in June for those with existing FHA mortgages…
Happy House Hunting!
Please contact the Stuart Epstein team if you have any questions! Call us 410.491.0200 or email me directly at sepstein@carrolltonbank.com.
