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PMI Rate increase for NY

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MockingJay
Ring out the old...

Member since 9/08

1312 total posts

Name:
Ring in the new!

PMI Rate increase for NY

ANyone hear about this? As of Oct 10th or something they increased the rate for PMI in NY.

If that's true that Fing bl0ws!!! Yet one more thing that's going to get in our way of homeownership Chat Icon

Posted 10/26/10 1:49 PM
 
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Mrs213
????????

Member since 2/09

18986 total posts

Name:

Re: PMI Rate increase for NY

what if you have it already - will it go up?

Posted 10/26/10 1:56 PM
 

MockingJay
Ring out the old...

Member since 9/08

1312 total posts

Name:
Ring in the new!

Re: PMI Rate increase for NY

THis is what I found so far:

Based on the new authority, effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA will lower its upfront mortgage insurance premium (except for HECMs) simultaneously with an increase to the annual premium which is collected on a monthly basis. This policy change will decrease upfront premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.

The link to the HUD announcement is here:

HUD ANNOUNCEMENT- Sept 1, 2010

Posted 10/26/10 3:03 PM
 

Blu-ize
Plan B is Now Plan A

Member since 7/05

32475 total posts

Name:
Susan

Re: PMI Rate increase for NY

from just what you posted it counteracts itself.

What normal human could understand that?

Posted 10/26/10 3:26 PM
 

MockingJay
Ring out the old...

Member since 9/08

1312 total posts

Name:
Ring in the new!

Re: PMI Rate increase for NY

Posted by Blu-ize

from just what you posted it counteracts itself.

What normal human could understand that?





Chat Icon Chat Icon Chat Icon Chat Icon Chat Icon

EXACTLY!

Why do u think I posted on here- I was wondering if anyone else heard about this or someone who's fluent in real estatish could translate

Posted 10/26/10 3:58 PM
 

Blu-ize
Plan B is Now Plan A

Member since 7/05

32475 total posts

Name:
Susan

Re: PMI Rate increase for NY

Posted by Belongs2DanBuckley

Posted by Blu-ize

from just what you posted it counteracts itself.

What normal human could understand that?





Chat Icon Chat Icon Chat Icon Chat Icon Chat Icon

EXACTLY!

Why do u think I posted on here- I was wondering if anyone else heard about this or someone who's fluent in real estatish could translate



for your up front premium there will be a decrease and then monthly we will increase your premiums..umm..what?

Posted 10/26/10 4:18 PM
 

HeatherRose
Life is Good :)

Member since 11/07

6605 total posts

Name:

Re: PMI Rate increase for NY

Posted by Belongs2DanBuckley

Posted by Blu-ize

from just what you posted it counteracts itself.

What normal human could understand that?





Chat Icon Chat Icon Chat Icon Chat Icon Chat Icon

EXACTLY!

Why do u think I posted on here- I was wondering if anyone else heard about this or someone who's fluent in real estatish could translate



it seems like you will pay more in the end.

you pay less upfront in one lump sum, but your monthly premium will increase and since you pay it for a few years, I'd say its safe to say you will pay more in the end. its good for your closing costs, bad for your monthly payment.

But, does this effect new loans as of the october date as in they pay less upfront and more monthly, or does if effect all loans upfront as of the october date and all loans monthly that were before October? Chat Icon that doesn't seem clear

Posted 10/26/10 4:28 PM
 

LadyBugN2Buggies
<3

Member since 5/10

6691 total posts

Name:

Re: PMI Rate increase for NY

sounds like we need...

External Image

Posted 10/26/10 4:48 PM
 

MegZee
My bunny

Member since 5/06

8777 total posts

Name:
Meaghan

Re: PMI Rate increase for NY



you pay PMI in two ways on an FHA loan.

1. you pay a certain % upfront at closing rolled into the loan.

2. you also pay a monthly fee until you get to the 80% LTV.

this is saying that they are going to decrease the % upfront, but increase the monthly fee.

Which doesn't make sense, because you would think they would want more money upfront (time value of money!) then more monthly (especially w/ default rates now adays). but its the govt so why would it make sense.

Posted 10/26/10 7:49 PM
 

Shroggie
Don't Worry...Be Happy

Member since 5/06

6261 total posts

Name:

Re: PMI Rate increase for NY

Posted by speakthetruth

sounds like we need...

IMAGE



Chat Icon

Posted 10/26/10 7:53 PM
 

MaZz
* Lovin my baby girl!!! *

Member since 2/09

6243 total posts

Name:
Gina

Re: PMI Rate increase for NY

From what I gather, it sounds like you'll be paying less at closing, but it'll be made up for in your monthly payments to PMI... i'd assume it would all work itself out pretty evenly Chat Icon PMI (for an FHA loan at least) must be paid for 5 yrs regardless if the 20% was reached correct?

ETA: correction FHA loans use the term MIP (same thing as PMI)

Message edited 10/27/2010 9:09:18 AM.

Posted 10/27/10 9:06 AM
 
 

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