Kicking around the idea of refinancing? Maybe debating on purchasing a home? Maybe an FHA Streamline Refinance? It’s time to get off the proverbial fence. I hate to beat a dead horse, but Ohio residents now have less than 30 days before FHA changes when Monthly Insurance Premiums (MIP), what you and I call monthly mortgage insurance, can be cancelled.
Why is Ohio FHA making these changes? Simply put, FHA’s pot of money that they use to fund homeowner programs has a deficit of $16.3 billion for 2013.
So how will what does this change mean to us Ohioans? Bottom-line, a FHA mortgage will cost you more come June. Let’s look at a $150,000 purchase with 3.5% down payment:
Currently:
Interest Rate: 3.25%
APR: 4.462%
Interest Paid Over Life of the Loan: $106,414.97
After June 3rd:
Interest Rate: 3.25%
APR: 5.053%
Interest Paid Over LIfe of the Loan: $125,405.20
Almost $19,000 more expensive after June 3rd.
The Mortgage Bankers Association interest rate forecast for later this year shows rates rising to 3.9% in the 3rd quarter and 4.10% in the 4th quarter of 2013.
Complete my simple, free, Ohio FHA Interest Rate Quote form (no social security number required) to get a personalized interest rate quote in a matter of minutes. Or you can contact me anytime with questions.
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