We mentioned several times that FHA Mortgage Insurance (MI) Rates are going up significantly in April. Many lenders made April 1st the cut-off date, but we now have several lenders allowing us to order FHA Case #’s as late as April 8th or 9th in order to preserve the lower MI Rates.
For most FHA loans, after April 9th, Up Front MI will increase from 1% of the loan amount to 1.75%. And Monthly MI will increase from 1.15% of the loan amount (divided by 12) to 1.25% of the loan amount (divided by 12).
For loans OVER $625,500, the increases will be much higher.
NOTE: For 15 year loans with loan-to-value ratios of 78% or less, there is NO Monthly MI. For higher LTVs, MI rates are much lower for 15 year loans. Borrowers with large down payments seeking 15 year terms should always consider FHA financing.
Final note: We need to only ORDER the case number for a specific address to preserve the lower MI; we have six months to close the related transaction once the case number is ordered.
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646