The word is out! FHA or the Federal Housing Administration has reduced their mortgage insurance premiums by .5%.
Although a half percent may not sound like much, this means HUGE savings for FHA buyers and the ability to qualify for more house! For example…let’s say a homeowner is looking for a loan of $200,000. New FHA guidelines would save the homeowner $83.34 per month on mortgage insurance, allowing the borrower to finance an additional $17,723.
What You Need To Know:
- The new MIP amounts are effective for case numbers assigned on or after January 26, 2015.
- All FHA borrowers seeking 30 year mortgages are eligible
- Average MIP savings of $900/yr.
- Ability to qualify for a larger loan amount
- Current FHA borrowers are able to refinance to take advantage of new lower rates.
Hampton Roads Real-e-statement is written by Alyssa Godwin, a Realtor with Liz Moore and Associates. For questions regarding buying or selling contact Alyssa at 757-329-6161 or firstname.lastname@example.org. You can also find Alyssa on Facebook or on the web at www.lizmoore.com/alyssagodwin.