Gainesville, FL (PRWEB) May 16, 2013
Chris Doering Mortgage advises Florida homeowners on impending FHA changes.
The Federal Housing Administration has made six changes to its mortgage insurance premiums over the last six years. Each modification has increased the short-term cost of using FHA-backed mortgages. The agency's next change, however, will change its long-term costs.
Beginning on June 3, the FHA will change its long-standing Annual MIP Cancellation Policy. Certain homeowners will lose their right to cancel the annual MIP. Currently, the Federal Housing Administration requires homeowners to pay annual MIP so long as their loan-to-value is greater than 78 percent, where "value" is equal to the last known value of the home. In addition, if the original mortgage term is greater than 15 years, at least 60 payments must have been made on the mortgage before FHA MIP can be automatically cancelled.
Beginning in June, the FHA will move away from an LTV-based system. The new cancellation policy will be as follows: loans beginning at 90 percent LTV or less will pay annual MIP for 11 years and loans beginning at 90 percent LTV or more will pay annual MIP for the complete loan term. This means that home buyers using the Federal Housing Administration's 3.5 percent down payment program will pay annual mortgage insurance for the loan's full 30 years, regardless of whether the home appreciates to the point of having 22 percent equity or more.
Chris Doering Mortgage advises any potential Florida FHA borrowers to apply for an FHA loan at least ten days prior to the June 3 deadline, so they may still reap many of the program’s benefits by obtaining an FHA case number.
For more information call the mortgage professionals at Chris Doering Mortgage today at 352-244-0840.
About the company:
Established in April 2007, Chris Doering Mortgage opened its doors in the Jacksonville, FL community with the goal of providing exceptional mortgage lender services, and accountability to a mortgage industry that can be both intimidating and overwhelming for potential customers in the market for home loans.
The commitment to skillfully and ethically deliver the highest quality customer service throughout the mortgage process is second to none with the Chris Doering Mortgage team of professionals. They specialize in FHA loans, current mortgage rates and mortgage refinance options.
The staff is constantly educating themselves on the ever-changing home mortgage landscape and adapting to the changing needs of the real estate industry to meet the expectations of clients. For more information visit their website at http://www.mygatormortgage.com.