FHA fees on the rise - but there is still time!

If you are hoping to get a Federal Housing Administration mortgage, you should get moving to avoid higher mortgage fees. 

The FHA says that on April 1, it will increase its annual mortgage insurance premium from 1.15 percent to 1.25 percent. This insurance premium is usually broken down into monthly payments that are added to your mortgage payments. The FHA will also increase its upfront mortgage insurance premium by three-quarters of a percentage point to 1.75 percent of your loan amount. This is a one-time fee you can pay when you close, or choose to have it added the total of your loan.

A lot of numbers, yes..... But this is what it means to you...

• If you borrow $200,000 before the increase: You'll pay $2,000 in the upfront fee (or you can add that to the total of the loan) plus about $191 per month for the annual premium.
• If you borrow $200,000 after April 1: You'll pay $3,500 in the upfront fee (or add that to the total of the loan) plus $208 per month for the annual premium.

Under this scenario you will save about $1,700 on the first year of the mortgage.

Call me or email me for more information on this. www.joymariehomes.com

Joymarie Chupein DeFruscio
Keller Williams Realty
Office 610-792-5900
My Mobile: 484-614-2204 (preferred #)