Welcome to the "Z" Team!

·         The “upfront” MI (the amount added to the loan amount at closing) is being reduced from the current 2.25% to 1.0% – that’s good news.  Means the client will be starting out with a lower loan balance. 

·         Bad news is that the MONTHLY MI will be going up from the current .55% per year to .85% to .90% per year.  On a $250,000 purchase price, this means approximately $55 per month in higher MI payment.

Implementation date is estimated to be September 7th, meaning all case #’s drawn after this date will have the new MI structure.  So if we have a house identified and it looks like the offer will most likely be accepted, you might want to get a case # on that house for that client and lock into the existing MI structure.  Some clients may opt for the lower up front cost and take the higher monthly payment.