Mortgage Terms Scrabble PictureWe’ve invited one of our preferred mortgage brokers, Mike Popnoe with Mortgage Trust, Inc., to be a regular contributor to our blog.  He will be sharing his insights and observations on the mortgage market in the Portland Oregon area.  Today’s topic is upcoming changes to the FHA backed mortgage loan program.  The floor is now yours Mike!


Starting with all loan applications after April 18th, the FHA will increase the monthly mortgage insurance premium paid by borrowers.  This increase may look insignificant at first glance, but when we crunch the numbers you might change your tune and opt to buy your new home sooner than later. 

The increase for a 30 yr fixed mortgage is:  

  • For loans with less than 5% down, premium increases from .90% to 1.15%
  • For loans with 5% down or more, premium increases from .85% to 1.10% 

On a $200k mortgage loan with 3.5% down payment the current monthly mortgage insurance premium is $150.  After April 18th, this payment will jump to $192.  This $42 increase may not seem that huge to you, but what if we relate it to interest rate.  With rates around 4.750% right now, to have the payment jump by $42 the rate would have to increase to 5.125%!  Now I have your attention, don’t I?

With rates still at historic lows and mortgage insurance increases looming in front of us, now is an excellent time to find your new home!


OK, we’re back now.  We’ve been recommending Mike to our clients for years now and find him to be a very professional mortgage broker with a lot of integrity.  If you would like more info on Mike and his services you can go to his website or reach him directly at 503-488-1818.

Happy home buying and selling!


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