Miami Home Loan and Element Funding staff has verified a monthly increase in FHA mortgage Insurance. All FHA mortgage case numbers assigned on or after April 1, 2013 will have an increased monthly rate (MIP) from 1.25% of the loan amount to 1.35% on standard FHA loans. That means a 96.5% Loan to Value (LTV) on a 30 year fixed loan. The monthly MIP is based on LTV and whether or not the mortgage is considered a high balance mortgage.
Duration of Monthly Mortgage Insurance
Also the requirements of the duration of the monthly mortgage insurance will depend on the original Loan to Value (LTV).
• If the original LTV > 90%, then the monthly MI (Mortgage Insurance) is required for the life of the loan.
• If the original LTV <= 90%, then the monthly MI (Mortgage Insurance) is required for the first 11 years of the loan, and, then it is removed.
Miami Home loan staff is always a good source of information to keep you informed. To get pre-qualified, or, just ask a financing question, please call me, Jim Carter, Loan Officer, at Element Funding, 305-525-6742.