October 1st brings some changes you should know about.
These will affect new loans and those in process without an appraisal ordered. These changes effect down payment and total cost of the loan.
1) Upfront MIP premiums - 1.75% for all purchase borrowers.
2) Annual premiums - .55% for loans over 95%, 95% or less - 50%
3) Down payment - 3.5%. Closing costs may not be used to meet the minimum 3.5% down.
If an appraisal is ordered prior to the 10/1 change date, the old rules apply.
On or after that date the above will apply.
