QualifyBuyersNow Blog

After April 18th 2011, the FHA monthly MI premium will change from 90 basis points (bps) to 115bps on loans with less than a 5% down payment.  If your down payment is greater than 5%, the monthly mortgage insurance will change from 85bps to 110bps.  This is a 25bps increase. 

To quantify this change, Let's take a look at a $170,000 FHA loan. 

Currently, monthly mortgage insurance would cost you $123.00.  After April 18th 2011, the same monthly mortgage insurance will cost you $157.00.

The difference is $34.00 per month.

This will make conventional loans look even more attractive to prospective buyers.