Tuesday, February 5, 2013

New FHA Guidelines to affect borrowers in Illinois, Michigan, Minnesota, Wisconsin and all other sta

Effective June 3, 2013, the Federal Housing Administration (FHA) is revising its current policies on Mortgage Insurance, in an effort to increase revenue.

Borrowers with FHA case numbers assigned after June 3rd will no longer be able to automatically cancel their MIP payments. Previous guidelines allowed borrowers to automatically cancel their MIP payments once their LTV ratio hit 78%. After June 3, 2013, that will no longer be an available option.

In its 79 year history, the FHA has boasted that it has never had to borrower money from the US Government. By law, the FHA is required to maintain a 2% reserve in its Mutual Mortgage Insurance (MMI) fund. Due to bad loans made in recent years, the MMI is now -1.44%.

In effort to account for these defaulted loans the agency is implementing new guidelines and released a statement saying, “Therefore, FHA will once again collect premiums based upon the unpaid principal balance for the entire period for which FHA is entitled. That will permit FHA to retain significant revenue that is currently being forfeited prematurely.”

This is big news for not only prospective home buyers, but also homeowners looking to refinance in Illinois, Michigan, Minnesota and Wisconsin. Contact a loan officer today to determine if an FHA loan fits your mortgage needs and how to lock in before the new guidelines go into effect.

Current Mortgage Rate Information as of February 5, 2013 Below:

Illinois FHA Mortgage Rates
IL 30 Year Fixed FHA mortgage as of February 5, 2013

3.250%/4.429 APR

Please click this link for APR assumptions and more IL mortgage rates

Michigan FHA Mortgage Rates
MI 30 Year Fixed FHA mortgage as of February 5, 2013

3.250%/4.429 APR

Please click this link for APR assumptions and more MI mortgage rates

Minnesota FHA Mortgage Rates
MN 30 Year Fixed FHA mortgage as of February 5, 2013

3.250%/4.429 APR

Please click this link for APR assumptions and more MN mortgage rates

Wisconsin FHA Mortgage Rates
WI 30 Year Fixed FHA mortgage as of February 5, 2013

3.250%/4.429 APR


Please click this link for APR assumptions and more WI mortgage rates

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