If you’re looking to purchase a home with FHA financing and your FHA case number is not assigned before April 1st, your monthly mortgage payment will be higher because of the new mortgage insurance premiums. Below is a chart which illustrates the changes to the premiums:
Loan amount: $300,000
Loan to value: 95% or less
Mortgage Insurance Premium with Current Rate: $297.26 a month
Mortgage Insurance Premium with New Rate: $322.02 a month
Increase Per Month: $24.76
The increase certainly won’t break the bank, but it does equal to almost $300 a year and almost $3,000 over a 10 year span. If you are house hunting right now and plan on getting an FHA loan, you will want to work closely with your loan officer and processor to make sure your application and documents are in order so that your FHA case number can be assigned as you find your dream home—and hopefully before April 1st.
And now, for your viewing pleasure: