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FHA MI Changes – what will they mean to the buyer’s monthly payment?

What do the FHA MI changes mean to the buyer’s monthly payment?

HUD is presenting the increase to the FHI MI premium as something that will have nominal effect on a buyer’s monthly payment, but is that the case? 

Payment Comparison for FHA MI Changes

Sales Price: $350,000     Base Loan Amount: $337,750

 

Before April 18,2012

On/After April 18,2012

UFMIP

$3377

$5910

Total Loan Amount

$341,127

$343660

P&I

$1579.81

$1591.54

MI

$320.72

$348.61

Home Ins

$58.33

$58.33

Taxes

$364.58

$364.58

Total Payment

$2323.45

$2363.07

Difference

 

+$39.62

 I suppose it’s subjective depending on what one considers to be nominal.  The calculation above shows that the increase in the FHI MI premium will result  in a difference of $39.62 which is just over a 3% increase in payment..  Some may think that it’s nothing in the big scheme of things, some will think that represents their daily latte which they can not live without.  And for some, that means that they could be $90 short on income to qualify!

Only time will tell how affected the market will be by the changes, Just another bump on the road to homeowership for some.

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