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Larry "Fly" Young

FHA to Switch to Risk Based Mortgage Insurance Premiums

Beginning July 14, 2008 the premium paid for mortgage insurance (MIP) on FHA backed loans. The monthly MIP will increase from .50 percent to .55 percent on all loans without a case number assigned before July 14, 2008. In addition, the Up-Front Mortgage Premiums will be based on risk (FICO scores) and Loan-to-Value ratios ranging from 1.5% to 2.25%. Some first time home buyers completing HUD-approved acounseling may reduce their Up-Front MIP by .25%. Read the entire content of HUD's Mortgagee Letter at http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-16ml.doc

 In short, if you're considering the purchase a property with an FHA loan in he near future, you can save money by applying for the loan and getting a case number assigned before July 14, 2008. 

Published Saturday, June 21, 2008 7:35 PM by Larry Young

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Toronto real estate agent said:

As a <a href="http://www.ellidavis.com">Toronto real estate agent</a> I do think that first time home buyers, i.e. younger people, may be underinformed in terms of mortages and loans. It is therefor a smart move for them to get in touch with a realtor, or at least, try to get informed vie the internet.

June 22, 2008 7:00 AM

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