Jana's Real Estate Blog

Currently the monthly mortgage insurance is calculated on .90% of the loan amount.  It will be 1.10% after 4/18.  Here are some examples:

$100,000 loan amount
$900/year
Mortgage Insurance = $75/month as part of the payment.

On the new change it would be:
$1100/year
Mortgage Insurance = $91.67/month

Stepping it up to say at $200,000 loan amount:
$1800/year
Mortgage Insurance = $150/month

On the new change it would be:
$2200/year
Mortgage Insurance = $183.33/month

There will still be the 1% fee up-front and that will remain the same for now.   Here is the link to the changes that are coming on FHA Mortgage Insurance with a couple of examples below on the effect.

http://www.docmagic.com/compliance/wizard/2011/march-2011/ml-11-10?elq=915ddbdb38924638a7928c8f9b9b8864

For details on how this affects you, or for additional information you should contact a good lender.  I highly recommend Ian Carmichael of Envoy Mortgage.  You can contact him at 512-306-8502 or icarmichael@envoymortgage.com.