.

Fees Changing for FHA Loans

FHA changes fees... how will it effect you??

As reported by the NY Times, there are some big changes starting on April 9th for fees charged on mortgages backed by the Federal Housing Administration (FHA.)  

1-Fees for buyers will go up effective April 9th.  The upfront mortgage insurance premium will increase to 1.7% of the loan amount, up from 1%.  The annual insurance costs, paid monthly, will rise 1.10 percentage points. 

2-Fees for refinancing will fall sharply starting on June 11th. The focus is to make refinancing easier and more affordable for the 3 million homeowners with FHA mortgages. The reduction in refinancing fee applies to those borrowers who are current on payments.  

The good news for buyers is that loans insursed by the FHA require only a 3.5%-10% down payment. Although the fees are increasing, most buyers will continue to borrow through FHA because of the lower down payments and the ability to wrap the upfront insurance fee into the initial loan balance.

Questions?   Ask your Mortgage Professional for details. Need a referral?  Let me know!

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »