Wednesday, May 18, 2011

Interest rate decrease SIKE 4.75% = 5.01%

So we're trying to ride the wind and surf for the best rate then I find out that it’s all trickery. It is my understanding that as of April 18, 2011 the MIP (Mortgage Insurance Premium) increased so if you have an interest rate of 4.75% your total costs are the same is if your loan is 5% so all of you that locked in at 4.8-5.25% don't feel cheated by those who locked in after you for less because if this article is’s pretty much all the same!

I contacted our NVR rep to provide clarity and confirmation to the accuracy of what I read. Still waiting. So I guess I’m still surfing! Check it out...

Welst (in the voice of the infamous Antoine Dodson) our rep said the following:

On April 18th 2011, FHA increased their monthly mortgage insurance factor from .9 to 1.15 so it has an effect on the monthly mortgage payment.

Thankfully our application was prior to April 18th and this won't affect us but it sure is GREAT to know!


  1. From my understanding, that's kinda right. Because I freaked out when I found out! If you could get your FHA Case # before the 18th, you were grandfathered out of it. Otherwise the payment is kinda like paying the 5%

  2. Yes, My Sales Rep stressed this when we started looking in March. I was so happy when we finished our application and received our loan number around the 2nd week in April! ;) Glad, your application was already processed as well.