The government(HUD) just made a huge announcement on FHA loans, the monthly mortgage insurance is going down. This is great news as this allows more buying power to those looking to purchasing a home. Here are the specifics:
For those loans with a loan to value of over 95% the monthly MI goes from .85% to .60% on a 30yr mortgage. This would benefit any home buyers who use the usual min down payment of 3.5%. On a home purchase of $250k this would save the buyer $50 a month off their payment!! And for loan to values of 95% and under the MI will go from .80% to .55%
On 15 mortgages the MI will go from .70 to .50% when you are borrowing more than 90% of the home’s value. And when borrowing 90% and under the MI will go from .45% to .25%.
This change goes into effect for any loans closing on or after Jan 27th, 2017!