Those looking to finance a home using an FHA loan will be interested to learn that changes are coming this Spring.
Monthly costs will go up (annual mortgage insurance premium (MIP) for new mortgages will go up by 10 basis points, and premiuims on jumbo loans - 625,000+ - will increase by 5 basis points).
You will no longer be able to drop the mortgage insurance after 5 years and 78% equity in the home (for loans with less then 10% down). You will be paying MI for the life of the loan.
The only way to stop paying MI will be to refinance the loan.
Please read the following news release, and check with your local loan officer for further clarification!