5 More Days - Fha 15yr/f No Mortgage Insurance

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
Effective 6/3/2013: FHA loans with terms 15 years or less will have .45 percent annual mortgage insurance; this is being increased from 0 percent. The mortgage insurance will also be applicable for the life of the loan! There is NO UPFRONT Mortgage insurance as well until 6/3/2013; this will be changing to 1.75 percent which in the example below would be $4987.50 that would be added onto the balance of the current loan amount. If you can avoid that and want a 15 year/fixed – now is the time to get it.

What does this mean?
If you’re looking to refinance through FHA and avoid mortgage insurance, this is your last shot. FHA has GREAT interest rates still available today and you don’t want to miss out on this opportunity if you’re eligible.

What do you do if you’re interested? Reach out to myself or your preferred lender immediately to order the case number through FHA before 6/3/2013. Our team is working around the clock for the next 5 days to make sure all our clients are protected from this new change.

You can reach out to myself at [email protected] or direct by phone at 619-379-8999.

Current Scenario (Example):
Purchased a property back in 2008 for $375,000.00 (been in loan for 5 years, 25 years remaining)
Down Payment: $75,000.00 – Starting Loan Balance: $300,000.00
Interest Rate on Old Loan: 6.5 percent, 30YR/Fixed
Current Loan Balance (After paying on for 5 years): $284,827.49
Monthly Payment (Principal & Interest): $1896.20

New FHA 15 Year/Fixed NO Mortgage Insurance (ONLY UNTIL 6/3/2013!!!!)
15YR/Fixed, Interest Rate (Approx): 3.375 percent
Approximate Loan Balance: $285,000.00
Monthly Payment (Principal & Interest): $2019.97/mo

With this borrower accepting a 15 year/fixed FHA loan without any extra mortgage insurance will have the loan paid off in 15 years which is a reduction of 10 YEARS from the current loan. As well the monthly payment will ONLY be increasing by $123.77/mo, you can’t really beat that but again ONLY HAVE 5 DAYS to get this opportunity.

I can’t stress enough how important this is, case numbers are valid for 60 days – if you have something that’s preventing you from refinancing for the next 60 days please still reach out to me, as long as we have the case number pulled prior to the change your new loan will have the old Mortgage Insurance rates rather than the new ones.

As always, if you have any questions please never hesitate to ask!
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