HUD, the agency that oversees the FHA Home Loan program recently announced a reduction to the annual mortgage insurance premiums associated with most FHA loans.
The changes reduce the annual mortgage insurance premium, which is paid on a monthly basis as part of one’s FHA loan by .25% for most 30 year fixed FHA loans and .20% for most 15 year fixed FHA loans.
Previously, if you were obtaining a 30-year fixed FHA loan with a 5% or less down payment, the annual MIP was .85% annually and that premium will now me .60% annually. With greater than a 5% down payment on a 30-year fixed FHA loan, the annual premium drops from .80% previously to .55%.
On 15 year, fixed FHA loans, with 10% or less down payments, the previous annual MIP was .70% and will now drop down to 50%. While on 15 year fixed loans, with greater than a 10% down payment, the annual mortgage insurance premium drops from .45% annually to .25% annually.
These changes are another positive step to make FHA home loans more affordable for all potential home buyers, especially for someone making a smaller down payment on a home purchase and makes the FHA home loan more competitive with lower down payment conventional loan options.
As always everyone’s individual situation is unique and it is always best to speak with a licensed lender, such as Strategic Mortgage and explore all available home loan options, for your specific situation.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: firstname.lastname@example.org or online at www.strategicmtgaz.com
Strategic Mortgage, LLC - NMLS#158804- Equal Housing Lender – AZBK#0909514
Vasilios Bill Kamboukos Jr – NMLS#160440