Auto Insurance Review: Changes to FHA Mortgage Insurance Premiums January 2015

Monday, 30 May 2016

Changes to FHA Mortgage Insurance Premiums January 2015

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Good news for anybody who either has an FHA loan or is looking to buy a property with an FHA loan.

On January 26, 2015, which is just a few days from the taping of this video, the FHA will be lowering their Mortgage Insurance premiums. The current FHA Mortgage Insurance premium is 1.35%. It’s going to be lowered by 0.5%, so from currently 1.35% to 0.85%.

This represents the savings to people taking out FHA loans anywhere from $90 to $300 per month every month that you have that loan. So anybody has an FHA loan. you may be available to do a Streamline Refinance. A Streamline Refinance has very low documentation and has no closing cost so it can be a good deal. You’re automatically saving by half percent just by the reduction in the Mortgage Insurance. And if your rate is higher than the new rate you’ll also save money on the interest rate itself.

The FHA insures about one-fifth of all new U.S. mortgages and is a major provider of mortgages to first-time homebuyers. FHA loans allow for little as 3.5 percent downpayment with the minimum FICO score requirement of 580.

The lower premiums are going to enable 800,000 homeowners to save money on a refinance and it’s going to enable another 250,000 new homebuyers to become homeowners due to the lower payments.

So whether you’re first time homebuyer moving in to a new house or you want to refinance your existing FHA mortgage, the FHA loan program will let you do this with lower Mortgage Insurance.

If you’re interested in finding out how you can buy a house with an FHA loan or save hundreds of dollars per month on your current FHA loan, give Dan Shlufman with Classic Mortgage, LLC a call at (917) 575 -6977 or email at dshlufman@classicllc.com.

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