“In order to qualify for the lower MIP rate, clients must start the application process and have a FHA case number assigned prior to April 18,” said Bobbi MacPherson, Capital Markets Product Manager at Quicken Loans.
Detroit, MI (Vocus/PRWEB) March 31, 2011
Quicken Loans Inc., the nation’s largest online retail mortgage lender, and the third largest provider of FHA loans, is reminding those interested in obtaining an FHA loan that the program’s monthly insurance premium (MIP) will rise for the second time in less than a year, increasing monthly mortgage payments. The increase in required MIP will take effect on April 18, 2011.
“In order to qualify for the lower MIP rate, clients must start the application process and have a FHA case number assigned prior to April 18,” said Bobbi MacPherson, Capital Markets Product Manager at Quicken Loans. “So if there are folks out there thinking about an FHA loan, they should start the loan process soon to avoid paying unnecessary extra mortgage insurance.”
MIP is required for the first five years on nearly all 30-year FHA loans. For example, under the upcoming MIP changes, a client with a $200,000 loan will pay an extra $42 per month in mortgage insurance alone. Over five years, that is an extra $2,520 for clients who wait until after April 18 to start the FHA mortgage process.
The change will also affect clients interested in a 15-year mortgage. Currently, if a client owes less than 90 percent of the value of their home they are not required to pay MIP on a15-year loan. However, after April 18, clients who have a similar situation will have to pay MIP for five years or until the loan-to-home-value is reduced to 78 percent.
About Quicken Loans Inc:
Quicken Loans Inc. is the nation’s largest online retail mortgage lender and among the five largest overall retail home lenders in the United States. The company closed a record $29 billion in retail home loan volume across all 50 states in 2010, and recently closed its 1 millionth loan. Quicken Loans employs approximately 3,700 team members and generates loan production from five web centers located in Michigan, Ohio and Arizona. The company also operates a centralized loan processing facility in Michigan as well as its San Diego-based One Reverse Mortgage unit. Quicken Loans ranked #1 in customer satisfaction among all home mortgage lenders in the United States by J.D. Power and Associates for 2010. “QuickenLoans.com” has been named “Best of the Web” by Forbes and Money magazines. The company also has been named to FORTUNE magazine’s list of the country’s “100 Best Companies To Work For” eight consecutive years, ranking as high as #2, and named in the Top-15 of Computerworld magazine’s “100 Best Places to Work In Technology” for six years in a row. Quicken Loans ranked #1 in the Detroit Free Press’ ”Top Workplaces of 2010” List. The company recently moved its headquarters and 1,700 of its 3,700 full-time team members to downtown Detroit. For more information about Quicken Loans, please visit http://www.quickenloans.com.
About Rock Holdings Inc:
Rock Holdings Inc. is the parent company for several financial services-related businesses and employs over 4,000 team members. These client-focused and technologically driven companies include Quicken Loans, the nation’s largest online home lender and One Reverse Mortgage unit, the fastest growing reverse mortgage lender in America; Title Source, a nationwide leader of title insurance and settlement services; Quicken Loans Mortgage Services (QLMS), a mortgage origination platform servicing community banks and credit unions across the country; In-House Realty, the preferred real estate partner of Quicken Loans that matches clients with trusted real estate agents in all 50 states; and, Quizzle.com, the online innovator and website where consumers manage their home, money and credit. Rock Holdings, Inc. also recently moved its headquarters to downtown Detroit.