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Monday, January 12, 2015

FHA to LOWER Insurance Premiums!

In a major development, the FHA announced it would reduce the annual mortgage insurance premium it charges on new FHA loans from 1.35% to 0.85%. This change, to be implemented near the end of January, in effect will lower mortgage payments on FHA loans the same as a 0.50% reduction in rates. Lower rates have made home ownership more affordable, and this change reduces the cost of ownership even more. The reduction will benefit many people, particularly first-time home buyers, due to the low down payments and relaxed credit standards associated with FHA loans.

 

On a $200,000 house, here’s what it will look like:

OLD monthly MI - $220.92/month

NEW monthly MI - $139.10/month!!!!!

A SAVINGS OF $81.82/MONTH!!!

 

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