Monthly premiums for FHA mortgage insurance will be cut from 1.35% of a loan's value to 0.85% starting Jan 26, 2015. As a result, a typical first time homebuyer in Florida will save $900 a year on their monthly mortgage payments. FHA mortgage insurance is designed to protect the agency in case a borrower defaults on a loan. This is one reason why lenders like writing FHA mortgages so much, as they are protected in some ways. In the wake of the financial meltdown and ensuing foreclosure crisis, FHA raised its mortgage insurance premiums to free up its finances. But now home values are on the rise again in 2015 and foreclosures have fallen to their lowest level since 2006.
See the new chart below:
Existing homeowners who refinance into an FHA loan will see similar savings. Home owners that have currently have FHA loans at the higher mortgage insurance rate are encourage to look into a FHA streamline refinance. Lower mortgage insurance and lower interest rates can equal big savings!
Florida home buyers that have questions can visit www.fhamortgagesource.com or call ph: 904-302-6060 - 7 days a week.
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