FHA Reduces Mortgage Insurance for all New Loans, effective Jan 26, 2015

http://img.youtube.com/vi/djFDLjde_VE/0.jpg

Home Buyer Advice: FHA Reduces Mortgage Insurance (MIP) for all New Loans.

Jim Conway with Primary Residential Mortgage tells us how the new, lower FHA Mortgage Insurance rates can help you buy more home for the same monthly payments. Questions? Just call us, or call Jim Conway, Primary Residential Mortgage, at 443-690-7910.

Learn how you can afford a higher priced home with this new change in the FHA mortgage insurance rates.

First off, it’s important to know that “FHA mortgage insurance” actually refers to two different things. Buyers pay an upfront premium when they purchase a home, which is currently 1.75% of the purchase price, and there is no indication that this rate is going to change. This premium can usually be rolled into the mortgage, so they don’t have to actually pay it at settlement. The other part of FHA mortgage insurance is the annual

premium, which is the part that is being reduced from 1.35% to 0.85%, effective January 26th, 2015. This is calculated as a percentage of the loan balance each year and is paid within your monthly payment.

Reduction in Monthly Mortgage Insurance –

What difference does this make for current

homeowners? Well, for instance – with a $200,000 30-

year FHA mortgage, a buyer could save about $84 per

month on their mortgage payment, simply by taking

advantage of the MIP reduction. $84 per month is over

$1,000 a year. What could you do with an extra $1,000 this

year?

What difference does this make for potential

buyers? On a $200,000 30-year FHA mortgage; the

reduction in the monthly mortgage insurance would

increase your buying power price range by $15-18,000. Now

perhaps, you can get the home you’ve always dreamed of?

284

source

FHA Reduces Mortgage Insurance for all New Loans, effective Jan 26, 2015