Purchase Now And Avoid MI Over The Life Of The Loan!

I wanted to let you know there are some changes coming for FHA Mortgage Insurance. When you purchase a home the lender needs to pull a FHA case number for the financing. The case number cannot be pulled until there is an accepted purchase agreement. The case number is connected to the property address and cannot be transferred to another property. For case numbers generated after June 1st, 2013 the monthly mortgage insurance (MI) is increasing to 1.35% from 1.25%. This is not a huge change in the buyers monthly payment. The biggest impact of the change is that the monthly mortgage insurance is going to be over the life of the loan. Currently the monthly mortgage insurance is canceled when the loan is paid down to 78% of the original loan amount. So act now to avoid paying MI over the life of the loan!

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