The cost of an FHA loan will be increasing very soon!

FHA is increasing their monthly mortgage insurance again on April 18, 2011. The monthly MI factor will increase from .9% to 1.15% on April 18th. So for an average $150,000 home at 4.75% interest, the payment will change from $998 per month to $1028 resulting in a $30 increase per month. FHA effective dates are always determined by the FHA case # date which is created by the lender once a borrower has an accepted purchase contract. That means that buyers have roughly 3 weeks to make a buying decision or face having to pay more per month for the same home. In order to avoid these fees, buyers need to act quickly.