Reduced FHA Mortgage Insurance Premiums
Same Great FHA Financing with Lower Premiums
You’ve been pre-approved for an FHA loan, but now you’re looking to save on your insurance premiums. Does this sound like you? We can help!
In order to help borrowers afford the mortgage insurance premiums (MIP) on their loans, The Federal Housing Administration (FHA) reduced amounts for those looking to refinance as well as those looking to buy. This reduction allowed for individuals to significantly save on annual homeownership costs. The change took effect on January 26, 2015 and reduced the amount of private mortgage insurance borrowers have to pay on home loans by half of a percent. The reduction is applicable on mortgages with terms greater than 15 years.
The chart below shows potential savings based on an FHA home loan with a loan-to-value (LTV) greater than 95% and a term greater than 15 years.
|LOAN AMOUNT||PREVIOUS MIP (1.35%)||NEW MIP (0.85%)||EST. MONTHLY SAVINGS||EST. ANNUAL SAVINGS|