FHA Mortgage Insurance Reduced January 27

Reblogger Debbie Reynolds
Real Estate Agent with Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional TN Broker: 208698

This is good news and certainly something that should have been done long ago. FHA kept raising Mortgage Insurance and it has hurt many buyers financially. Some were hurt so much that they could not qualify. I am certainly glad to see these lower costs, finally. Thanks John Meussner for sharing the news.

Original content by John Meussner NMLS #138061 MMCD #1141

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.

John Meussner

NMLS# 138061

Visit My Website!

 

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Rainmaker
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

This should make loans more affordable.  This fee was way to high

Jan 10, 2017 07:15 PM #1
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
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Debbie this was a good step in the right direction by FHA.  Hopefully they will also make it possible to get rid of the Mortgage Insurance Premium (PMI) once again.

Jan 10, 2017 07:26 PM #2
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Harry F. D'Elia
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This was a great pic for a reblog today

Jan 10, 2017 07:28 PM #3
Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Debbie 

It will help the FHA buyer  to reduce their monthly payment.

Good luck and success.

Lou Ludwig

Jan 10, 2017 07:35 PM #4
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Paul S. Henderson, CRS, REALTOR®,
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I read that post and got all excited and made some phone calls immediately Debbie Reynolds 

Jan 10, 2017 08:36 PM #5
Rainmaker
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debbie I saw this when our friend George Souto  wrote a post about it a few days ago, it is a couple steps in the right direction... not making this into a political comment but we are heading in the right direction, Endre

Jan 10, 2017 11:21 PM #6
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is a good post to reblog. I hope others will read it too and learn .

Jan 11, 2017 03:45 AM #7
Rainmaker
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Roy Kelley
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This is a great selection for a reblog and important information to share.

Jan 11, 2017 03:12 PM #8
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Hi Roy Kelley, We all need to get the word out on this.

Jan 11, 2017 03:53 PM #9
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
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Thanks Gita Bantwal and know this will help 2017 buyers.

Jan 11, 2017 03:53 PM #10
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Debbie Reynolds
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I am glad to see this happen and hope more initiatives will follow, Endre Barath, Jr..

Jan 11, 2017 03:54 PM #11
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
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Especially for this type of loan it is very helpful, Lou Ludwig.

Jan 11, 2017 03:55 PM #12
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
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I need to do the same and make some phone calls, Paul S. Henderson, REALTOR®, Broker, Tacoma Washington.

Jan 11, 2017 03:55 PM #13
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
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I hope reform is coming. Lending has gotten so convoluted,George Souto

Jan 11, 2017 03:57 PM #14
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
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I totally agree with you William Feela. Times are changing, hopefully.

Jan 11, 2017 03:58 PM #15
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
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Thanks Harry F. D'Elia. I am glad to help get the news out.

Jan 11, 2017 03:58 PM #16
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Costa Mesa, CA
#MortgageMadeEasy Costa Mesa, CA 484-680-4852

Thank you for helping to spread the word, Debbie.  Greatly appreciate the reblog, and hopefully this will help folks in your neck of the woods save some money.

Jan 11, 2017 05:41 PM #17
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
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Thanks John Meussner, I want as many buyers to know this news. It is so positive.

Jan 13, 2017 07:42 PM #18
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