fha mortgage insurance premium: FHA UPDATE: Significant Reduction in Mortgage insurance
- 02/28/23 08:56 AM
FHA Loans Just got MUCH more affordable
After years of being one of the more expensive options for mortgage insurance this is welcome news. In many cases FHA will now be the less expensive option for mortgage insurance for low down payment borrowers vs conventional mortgages.
The typical 3.5% down FHA loan will see the Monthly Mortgage Insurance Premium dropping from .85 to .55. (for loans under $726,200)
What does that all mean in English?
In my market a typical FHA borrower will likely have a $400,000 mortgage. Prior to this change the MIP would cost about $283/month and after the change it will be … (4 comments)
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fha mortgage insurance premium: FHA loans -THEY ARE BACK
- 01/11/17 08:31 AM
UNFORTUNATELY THIS PENDING CHANGE WAS RESCINDED BY HUD 1/20/2017
Well, that title may be a little deceiving, they never really left, they just were too expensive for the past few years- and because of this we have been opting for Conventional loans more often than FHA.
FHA's first Mortgagee Letter of the year (ML2017-01) announced a significant reduction in FHA's Monthly Mortgage Insurance Premium, this change is effective for loans funding on and after January 27, 2017.
Here is the pretty chart:
Outside of the mortgage world this may be confusing, so lets put some real world numbers together:
If you were borrowing $200,000 and had the 3.5% … (2 comments)
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