FHA Mortgage Premium Insurance is Reduced

Posted by on 9:53 am in Updates | 0 comments

As of January 26, 2015 the FHA has reduced the annual Mortgage Premium Insurance (MIP) from 1.35% to .85%. 

What does this mean for you? This .5% reduction will make home ownership affordable for more people. Monthly payments will be lowered. And this discount is available for both purchases and refinance* transactions with 30 year terms.**

For example, a home buyer with a base mortgage of $150,000  would save $62.50/month on their monthly mortgage payment.

HUD estimates these lower premiums will save more than two million FHA homeowners an average of $900 annually and spur 250,000 new home buyers to purchase their first home over the next three years.

Contact us today for information regarding FHA’s new annual mortgage insurance premiums.

*Except for streamline refinances of FHA loans with case numbers on your before May 30, 2009 and Hawaiian Homelands Loans.
**Amortization of 15 years will have standard rate.



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