When you get a loan from the government – specifically an FHA loan – there is a trade-off. While you won’t typically have to come up with as much money for a down payment, your interest rate will probably be a bit higher. Plus there are other expenses and they are going up Arizona Realtor Karen Simms explains,
Beginning April 1, 2013, the mortgage insurance premium will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners. The staggering increase will occur on 6/3/2013 when FHA’s policy on the duration of the required mortgage insurance will be increased for the life of the mortgage. It basically doubles the amount of total MIP if the loan is paid to term.
If you’re planning for a loan guaranteed by the FHA, expect to pay more!
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