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St. Louis Mortgage Rate Update; Mortgage Insurance Premiums Increase for FHA Loans

Acting FHA Commissioner Carol Galante recently announced a new premium structure for FHA-insured single family mortgage loans.  FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent .   Upfront premiums (UFMIP) will also increase by 0.75 percent.

 

“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market,” said Galante.  The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent.  This change is effective for case numbers assigned on or after April 1, 2012.  

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount.  This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to permit financing of this charge into the mortgage.  This change is effective for case numbers assigned on or after April 1, 2012

Current: After April 1st:
Base Loan : $ 100,000 Base Loan: $100,000
UFMIP 1%: 1,000 UFMIP: 1,750
Total Loan: $ 101,000 Total Loan $101,750
Monthly MIP: $ 95.83 Monthly MIP: $ 104.16

St. Louis MORTGAGE INTEREST RATES for February 29, 2012:

  • Conventional 30-Year Fixed 4.125%/ 4.320% APR
  • Conventional 15-Year Fixed 3.25%/ 3.486% APR
  • Conventional 5/1 ARM 2.375%/ 3.082% APR
  • FHA/VA 30 Year Fixed 3.750%/ 3.991% APR
  • Jumbo 5/1 ARM 2.75%/ 3.01% APR
  • Jumbo 15 yr Fixed 3.375%/ 3.630% APR
  • Jumbo 30 yr Fixed 4.750%/ 5.010% APR

 

*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.

Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

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