Mortgage Insurance Premiums Increase April 5th

The Federal Housing Administration, FHA, has kept mortgage rates and Mortgage Insurance Premiums, MIP, lower than the market dictated for some time to encourage home buyers to shore up the economy.

MIP premiums are about to increase; the date is April 5th. On case numbers dated after April 4th, MIP premiums go from 1.75% of the total loan value to 2.25%. It’s not as dreadful as it sounds. On a $200,000 mortgage, the increase, based on today’s interest rates, is approximately $6 per month–stay out of Starbucks for two lattes and you will have more than made up the difference!

Interest rates are another story; an April increase is anticipated by economic predictors across all persuasions. If you are on the fence about buying a new home, this is the month to do it!

Not only are interest rates and MIP rising but the date to qualify for the first-time homebuyers and current homeowners tax credit expires on April 30th. You must be under contract by April 30th and close by the end of June. The tax credits are $8,000 and $6,500 respectfully.

Call me at any time, 713-818-2404, for more information. I am always happy to answer your inquiries. I have sold Katy real estate for more than 20 years.