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FHA Changes Effective April 5th
HUD Increases Mortgage Insurance
Effective April 5th, 2010, HUD will increase the required Upfront Financed Mortgage Insurance Premium from 1.75% to 2.25% for all FHA purchases and refinances. This will increase the borrowers financed loan amount by $500 per $100,000 loan amount, but only increase the payment by less than $3/month (depending on the interest rate.)
As we know that "every bit helps" when it comes to payment and closing costs, we want all of our referral sources and customers to be aware of this change. If you have a borrower in the midst of negotiating a contract OR if you are exploring the possibility of refinancing your home, please let us know immediately. We can avoid these impending changes (and save you the increased premium) by requesting an FHA Case Number prior to April 5th.
Just Keeping You Informed -
Ronnie Wilson
Branch Manager
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