The recent FHA announcements show further increase in Annual Mortgage Insurance Premium on standard San Jose, CA FHA loan programs
. There was an increase in October 2010 and now for the second time the premium increased within a period of six months.
Here are the important changes with effect from effective from April 18th 2011.
1. For standard forward mortgages there will be .25% increase in Annual Insurance Premium. The Upfront Mortgage Insurance is still at 1.00%.
2. For LTVs GREATER than 95% on 30 year loans the Annual Premium comes to 1.15%.
3. For LTVs EQUAL to or LESS than 95% on 30 year loans the Annual Premium comes to 1.10%.
4. For LTVs GREATER than 90% on 15 year loans the Annual Premium comes to .50%.
5. The Annual Premium is now .25% for LTVs EQUAL to or LESS than 90% on 15 year loans.
You can get a clear idea on how these changes are going to affect from the chart below.
It will be more expensive for you to buy or refinance a home in San Jose, CA using FHA loans as a result of this change. Therefore if you are looking for a home, it is better to get into contract before April 18, 2011 to save the .25% of loan amount every year (for at least five years).
If you need full details on FHA Mortgagee Letter 11-10 which explains about the change to San Jose, CA FHA Annual Mortgage Insurance Premium, you can Click Here
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