FHA Mortgage Insurance Reduced January 27

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Mortgage and Lending with Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, NMLS #138061 MMCD #1141
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FHA Mortgage Insurance Reduced January 27

 

     HUD has announced that as of January 27, 2017, all FHA loans will be subject to a reduced PMI rate, saving home buyers and home owners potentially thousands of dollars over current rates.

 

     For those with FHA loans set to close prior to 1/27, it would be wise to hold off if possible to take advantage of the reduced rates, as the changes will be effective for all loans closed with funds disbursed on or after January 27, but loans closed in the interim are subject to current rates.  

 

     Why they don't make these changes effective immediately is beyond me as it is sure to cause frustration for folks using FHA with closing dates between today & January 27, and there is of course still the down side to FHA mortgage insurance remaining present for the life of the FHA loan, but all in all, this is a very positive industry change, and reflects that the FHA insurance fund has reached a capacity reflective of a market with few defaults.  

 

     With loan amounts for Conventional & FHA loans increasing for 2017, and now mortgage insurance for FHA loans being reduced, indicators point to our nations housing & mortgage market being nearly fully recovered from the 2008 collapse.

 

     Most 30 year FHA products will see a 25 basis point reduction and 15 year products set for a 20 basis point decrease, as reflected in the chart below.  In dollars, this represents a $500/year savings for someone with a $200,000 loan amount.

FHA mortgage insurance chart

     For all those looking forward to a wonderful 2017 in the real estate and mortgage markets, this is welcome assistance to offset the recent increases in interest rates, especially since FHA is a product used by many first time buyers. 

 

     If you have any questions on the FHA changes or how it impacts your loan process, feel free to give me a call at 484.680.4852.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 01/10/2017 06:35 PM
Topic:
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
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John good job in getting this news out so quickly.  You must have just beat me to clicking on the submit button

Jan 09, 2017 02:26 PM #14
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Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
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Hey John,
This is great news for my buyer scheduled to close in Feb.
I also agree with you - why not make it effective immediately?
Mel

Jan 09, 2017 02:45 PM #15
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Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

John, any reduction in the PMI is going to be welcomed by buyers. I agree with you though...why not make it effective immediately. Rich

Jan 09, 2017 03:32 PM #16
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Maria Sapio
Berkshire Hathaway Homesale Realty - Carlisle, PA
Real Estate Agent- Carlisle, PA. Mariasapio.com

John Meussner - This is encouraging information for those that are getting an FHA loan ... I appreciate your immediate response to share the news with us!

Jan 09, 2017 03:37 PM #17
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
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Hi John

Thanks for the education about the new FHA PMI rates. That's bound to make some people very happy, although not those ready to close now!

Jeff

Jan 09, 2017 04:02 PM #18
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
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Having a government agency reduce a fee is really good for the mortgage holders that have to pay PMI

Jan 09, 2017 04:07 PM #19
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Noel Mayer
FAIRMOUNT REALTORS - Montclair, NJ
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Great news thank you for the information

Jan 09, 2017 04:09 PM #20
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Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

That sounds like great news for many out there.  I wonder if there will a lot of dates rescheduled.

Jan 09, 2017 04:19 PM #21
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

John

The new FHA mortgage will save the FHA buyers money each month as a result of the lowering the mortgage insurance cost.

Good luck and success.

Lou Ludwig

Jan 09, 2017 06:12 PM #23
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

John

Congratulations on the feature for your post.

Good luck and success.

Lou Ludwig

Jan 09, 2017 06:13 PM #24
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Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
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Thanks for providing accurate information to us today. very much appreciated

Jan 09, 2017 06:29 PM #25
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Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

This is very good news and I appreciate the information about the closing date being the determinant for the new rates.

Jan 10, 2017 03:56 AM #26
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Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great news, but it won't go into effect till the end of January!!!

For those with FHA loans set to close prior to 1/27, it would be wise to hold off if possible to take advantage of the reduced rates, as the changes will be effective for all loans closed with funds disbursed on or after January 27, but loans closed in the interim are subject to current rates

Jan 10, 2017 04:35 AM #27
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Mike Bjork
American Pacific Mortgage - Redondo Beach, CA

This will definitely help our CA borrowers, as they drop from 105bps to 60 bps (pretty substantial drop, I may say!).

Jan 10, 2017 09:05 AM #28
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Paul McFadden
Paratex - Seattle, WA
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Thanks! That's great news. Thanks for keeping us in the know!  

Jan 10, 2017 03:07 PM #29
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Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Your Alexandria Virginia Real Estate Agent

John, I've read quite a few articles on this in the last 24 hours and yours is superior. You explained it extremely well. 

Jan 10, 2017 05:01 PM #30
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Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton

Dear John,

I heard that. Thank you for the strategy.

Jan 10, 2017 05:15 PM #31
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Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
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Again you serve AR and the public with great info --- John Meussner 
Thanks for the timely notification.
All the best - Lynn

Jan 10, 2017 06:51 PM #32
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Stu Dye
Residential Mortgage Services, Inc. (RMS) -- NMLS #1760 - Portland, ME
NMLS #441847

You gotta' wait, right?  Get your 'Clear to Close' and reschedule...  And then hope it doesn't go through some type of pre-close audit.  

Jan 11, 2017 05:40 AM #33
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Jan Green
HomeSmart Elite Group,Scottsdale, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

A great, positive change to FHA loans by reducing MIP! 

Jan 11, 2017 08:12 PM #34
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#MortgageMadeEasy Costa Mesa, CA 484-680-4852
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