Flower Mound Mortgage Company, Premier Nationwide Lending, releases the news about FHA increasing their maximum loan limits starting January of 2015. This post is specific to Denton, Collin, Dallas, and Tarrant counties. Check FHA’s official site for new loan limits in your area.
With home prices still on the rise in this crazy sellers market, especially in the middle price ranges above $150k, but under the jumbo mark, this may very well be a big deal for our market in 2015. For years, the maximum mortgage someone could get in this area was $271,050, but the new maximum loan will allow up to $310,500. If you are putting down the minimum of 3.5% that makes FHA very attractive for most. Now, your can buy a home with a sale price up to $321,750 and stay under those allowable limits.
Calculating the Mortgage Insurance on FHA loans…(MIP-Mortgage Insurance Premium and UPMIP-Up Front Mortgage Insurance Premium)
If you are interested in figuring the Annual MIP (which is actually paid monthly) and your UPMIP (which is usually rolled into the loan), see one of my previous posts about the different FHA MIP factors that are different for calculating depending on down payment amount and loan terms.
- – Calculating Monthly MIP– Monthly MIP is actually termed annual mortgage insurance…you calculate for the annual cost, then divide it by 12, and you get your monthly. For example, $100,000 loan, multiplied by 1.35% factor gets you $1,350 annually. You divide that by 12 and get $112.50 for the monthly payment…this will be rolled into your total escrowed payment.
- – Calculating Up Front Mortgage Insurance– You take the loan amount, multiply it by the FHA UPMIP factor, and that is rolled right on top of the loan. Say you have a $100,000 loan amount after your 3.5% minimum down payment. Take your 1.75% FHA UPMIP factor and multiply it times $100,000 and you get $1,750. Your final loan amount that your new mortgage payment will be calculated from will be $101,750.
Other Frequently Asked Questions about FHA answered here: YOU MIGHT ALSO BE INTERESTED IN!!!
When Does Mortgage Insurance go away?
FHA for First Time Home Buyers
Down Payment Assistance and FHA – contact me
click the following page
FHA New Maximum Mortgage Limit in 2015