Welcome to the LaneCountyHomes.net Blog

2013-02-13 07:54:10
FHA Mortgage Insurance: Increasing Rate & Length


Two changes are coming with FHA 30 YR Mortgage Loans:

#1 On homes not in contract (not pending) and assigned an FHA case number by April 1, 2013, the monthly insurance rate is increasing 10 Basis Points

  • 30 year fixed with loan to values of 95% or lower will increase to 130 bps (from 120)
  • 30 year fixed with loan to values greater than 95% will increase to 135 bps (from 125)


#2 And considerably more important is that borrowers will no longer be allowed to eliminate their monthly mortgage insurance.  This will take affect on homes not in contract and assigned an FHA case number by June 3, 2013.


What's this mean for an FHA home buyer? 

Currently an FHA buyer can eliminate their mortgage insurance after 5 years AND when the value of their loan vs. their appreciated home is at 78% or less.  Come June 3, 2013, FHA mortgage insurance will be required for the life of the loan on any new loan.

To illustrate: lets look at a home that has an FHA loan of $200,000.  The Mortgage Insurance on this home will be: $225 per month.  Let's assume the buyer would be able to eliminate this mortgage insurance currently in 7 years.  Under the new regulations the buyer would continue to pay this for the life of the loan.  If they make their regular payments for 30 years this would add:  $62,100 more in payment if they get into contract on or after June 2, 2013  vs. before this date.



for more detail read:  mortgagereporter.com

Blog Archive
2017-10-12 15:05:20
Eugene Housing Market

2017-09-25 10:07:18
Eugene OR Real Estate Market- Sept 2017

2017-02-20 13:43:09
Eugene Housing Market Trends- 02/2017

2017-01-13 15:36:34
How to Sell Your Home Fast in Lane County Oregon

2017-01-02 09:18:05
Eugene Housing Market Shift?

2016-12-14 16:44:06
Eugene Real Estate Market

2016-11-29 10:38:32
Hottest Sellers Market in Eugene Oregon- 97404

2016-11-21 09:27:26
Springfield Housing Market

2016-11-14 09:24:06
Eugene Housing Trends

2016-11-07 08:46:17
Real Estate Market Trends- Eugene Oregon

2016-01-04 08:54:18
What Every Home Buyer Needs to Know

2015-02-16 09:07:07
Lane County Homes- Sales Report- Jan 2015

2015-01-19 09:43:02
Lane County Homes- Sales Report- Dec 2014

2015-01-12 14:18:52
FHA Lowers Mortgage Insurance Rate

2014-12-17 09:44:21
Lane County home values continue to rise

2014-05-16 07:51:38
Lane County Homes Sales Report- April 2014

2014-04-30 08:45:57
Lane County Short Sales & Bank Owned Homes

2014-04-17 09:32:17
Lane County Homes Sales Report- March 2014

2014-04-08 10:28:40
7 New Camp Harlow Kid Scholarships

2014-03-18 08:06:31
Lane County Homes Sales Report- February 2014

2014-02-17 10:34:25
Lane County Homes Sales Report- January 2014

2014-02-14 10:04:52
Foreclosure Increase? in Oregon

2014-02-12 17:57:12
Home Projects: Cost vs. Value

2014-01-15 23:23:38
Lane County Homes Sales Report- December 2013

2014-01-07 17:25:45
Relocating to Oregon

Click here to see ALL articles.

Comment on this Article

Your Name:
Your Email:
Verify:  Please enter the numbers shown to help eliminate spam.