Friday, May 03, 2013

FHA Loan Costing You More...

Hurry and make sure you get under contract and start your FHA loan before 6/1/13, because it will cost you more if you don't.  FHA loans have been popular due to the minimum 3.5% down payment.  FHA has been struggling for the past few years in rebuilding their reserves after experiencing heavy losses due to foreclosures.  After 6/1/13 Mortgage Insurance Premium (MIP) will become a permanent payment during the life of the loan.  As of now MIP can terminate when your reach 78% loan to value ratio.  MIP typcially adds $150 more to your monthly payment.  Avoid this being applied to the duration of your loan, and hurry to contact your Orlando Buyers Agent to find a home before 6/1/13, its not too late.