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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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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 
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Posted 10/26/10 1:49 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: PMI Rate increase for NY
what if you have it already - will it go up?
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| Posted 10/26/10 1:56 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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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
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| Posted 10/26/10 3:03 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: PMI Rate increase for NY
from just what you posted it counteracts itself.
What normal human could understand that?
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| Posted 10/26/10 3:26 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: PMI Rate increase for NY
Posted by Blu-ize
from just what you posted it counteracts itself.
What normal human could understand that?
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
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| Posted 10/26/10 3:58 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: PMI Rate increase for NY
for your up front premium there will be a decrease and then monthly we will increase your premiums..umm..what?
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| Posted 10/26/10 4:18 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
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Re: PMI Rate increase for NY
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?  that doesn't seem clear
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| Posted 10/26/10 4:28 PM |
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Re: PMI Rate increase for NY
sounds like we need...
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| Posted 10/26/10 4:48 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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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.
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| Posted 10/26/10 7:49 PM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: PMI Rate increase for NY
Posted by speakthetruth
sounds like we need...
IMAGE
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| Posted 10/26/10 7:53 PM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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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 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.
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| Posted 10/27/10 9:06 AM |
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