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Health & Fitness

Save Thousands – Act Now

FHA purchase and refinancing is about to get a lot more expensive starting June

If you are thinking about doing an FHA refinance or considering buying a home with a low down payment and using an FHA (Federal Housing Administration) loan to do it, then you should act now. 

On June 3,  FHA borrowers will be require to pay for mortgage insurance for the entire life of the loan.  Currently, FHA borrowers stop paying these premiums when the loan reaches 78% of the original amount. 

For example, if you get a $250,000 FHA mortgage your mortgage premium payments will be approximately $3,375 a year, or about $281 a month.

Instead of being able to eliminate these extra payments after your loan reaches 78% of the value – as is currently possible – your FHA loan will require you to continue paying mortgage premiums through the life of the loan. This will easily end up costing you thousands and thousands of extra dollars – no matter how little principal you have left on your loan.   With the rate at which homes are currently appreciate, you could easily reach that benchmark of 78% of value in a short amount of time.  Why spend years continuing to pay mortgage premiums if you don’t have to?

The good news is that there is still time to get in under the wire. If you are thinking of refinancing with an FHA loan or buying a home and using an FHA loan to do so, it would be wise to get that done by June1st, 2013.

A little preplanning could help you save a lot of money over the life of your loan.

For information on FHA refinancing, check out our FHA Streamline Refinance website

For more information, visit us online at emortgages.com and check out our blog emortgagesblog.com

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