If you thinking you will be buying a home in Ann Arbor the next few months, make sure you get your loan application process going if you plan to purchase a home or condo in Ann Arbor in the next few months.
Most of the buyers we are working with have been using FHA loans over the last few years.That is because as a buyer they ONLY needed a 3.5% down payment. Now FHA has notified us they are going to increase the fees associated with getting a FHA loan beginning April 1st, 2012.
*** You do not have to close on the house by April 1st you just need to get approved for the FHA loan and be in the process.
What are the FHA fees after April 1st,2012?
On April 1st, all FHA loans are going to be increasing their MIP fees and it will be calculated on the price of the mortgage. They are increasing by 1.75% the upfront fee and 1.25% on the loan balance.
Here is a simple example on the increase in FHA fees:
- At a mortgage amount of $150,000, the mortgage payment will increase approximately $18.00 a month.
- At mortgage amount of $200,000, the mortgage payment will increase approximately $24. 00 a month.
- At a mortgage amount of $250,000, the mortgage payment will increase approximately $31.00 a month.
I know some of you are thinking….”big deal” a meal out a week.
multiply one of those examples a month by the increase over 30 years. If you use the $31.00 a month increase over 30 years it is $11,160 over the life time of the loan. Now that is more than a dinner out, right?
If you wait until after April 1st, 2012 you will not have any choice but to accept the new terms and conditions in obtaining a FHA loan.
If you need to get the loan process going, give me a call at 734-926-9797.
Or better yet for awesome service, call Stephen Marrs at Gold Star Financial to get your loan process going.