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Future FHA Changes Will be a Game Changer

If you are thinking of purchasing a home or refinancing with a FHA mortgage, don't wait because it will be more expensive.

Sometime in 2013 there will be a number of changes, but one will have a major effect. FHA plans to do away with the cancellation of the monthly mortgage insurance. That is not good news.

The present rule is that borrowers have to pay the monthly mortgage insurance for a minimum of 60 months and once you have a 22% equity position in your home, the monthly mortgage insurance goes away. That will no longer be the case.

So what advice can you give clients that will need to purchase using FHA as the mortgage type? If you know someone who is thinking of buying a home in the future, BUY NOW. There will be no better time.

Check out this article for the details on the changes coming:

Changes to Insurance Premiums for FHA Loans

By: Rosemary Rugnetta

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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