First email I read this morning for one of our banks:
FHA just announced they lowered their monthly MIP effective on closing/disbursement dates on or after January 27, 2017. The FHA MIP dropped 25bps in most cases and even more in some other situations. This is a huge improvement!
How much improvement? The monthly fee for a loan amount of $424,000 is $300.33 and that fee on new loans after January 27 will drop to $212.00 that is $88.33 a month ro $1059.96 per year. The .25 bps drop actually off sets the .25 increase the the Fed raised in December.
When fixed rates start to increase the banks and agencies have to make moves like this to continue to make their products attractive. Good Move FHA
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