If you haven't heard by now, FHA is increasing the annual Mortgage Insurance Premium again by .25% on April 18, 2011.  Payments will be higher even if the interest rates remain the same.

Greater Cincinnati and Northern Kentucky Home Buyers who are ready to take action can still lock in the lower MIP.  If they have a contract signed by all parties and get an FHA case number issued prior to 4/18/11, the lower MIP rate will apply.

For a $175,000 home at 5% interest, the new MIP will mean the buyer will pay $35 more per month to live in the same home.  If you don't have to pay more, why would you?

Another possibility is that if interest rates go up .5% by the same effective date, you could pay $88 more per month to live in the same home.  What would you spend $88.36 on if you don't have to make a larger payment?

 

April 18th is a Monday this year, so you'll probably need to get your contract completed and accepted by the previous Friday at the latest to give your loan officer an opportunity to order the case number.  If you don't have a loan officer, I can recommend a reliable one.  Making good decisions will improve your entire homeowner experience and save you money.  Call me, Jason Bowman at 513-766-0647 today to schedule a no obligation no cost to you buyer consultation to become educated on the home buying process.