00:00So here's a couple things to remember about this new rule that's effective on May 1st.
00:04This only applies to new FHA homebuyers and not existing homeowners.
00:08So if you already own a house, your monthly payment is not going to go up.
00:12Also, if you have an excellent credit score,
00:14your monthly payment is not going to be higher than someone with a bad credit score.
00:18And here's why.
00:19The average loan-to-value ratio is 80%.
00:22Now, I want to show you the graph that shows the outright LLPAs.
00:26This just means when you consider all the factors into it,
00:30with all of these new changes,
00:32here's the rate difference between someone with good credit and someone with bad credit.
00:36At 80% loan-to-value ratio,
00:38those with a bad credit score of 640 or lower have an LLPA of 2.75%
00:45versus only 0.875% for those with a score of 740.
00:51And the rate gets even better after that.
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