It was just recently released that the mortgage insurance rates for FHA home loans is dropping by one-half percent. This will make it easier for current buyers. In this article are a few facts on on Las Vegas FHA home loans lower mortgage insurance rates.
Beginning January 26, 2015
Las Vegas FHA home loans lower mortgage insurance rates go into effect on January 26, 2015. Any FHA files requested on or later than that date will receive the lower rate. Case numbers are typically issued when the mortgage application is started. For case numbers already created, you may be able to cancel the existing case number and generate a new one. There is a set process that must be followed by your mortgage company to achieve this. Unfortunately, closed home loans do not qualify. A refinance would be necessary.
Las Vegas FHA Home Loans Lower Mortgage Insurance Rates
Las Vegas FHA home loans lower mortgage insurance rates are 0.5% below previous mortgage insurance rates. There are actually various mortgage insurance rates based on the loan to value amount. For home loans with five percent or more down, the mortgage insurance charge was 1.3% and is now changed to 0.8%. For home loans with less than 5% down, the old mortgage insurance was 1.35%. The new rate is 0.85%.
How Premiums are Calculated
Monthly mortgage insurance is determined by multiplying the loan value (not purchase price) by the mortgage insurance, and dividing by 12 (months). For a buyer with a minimal down payment, the mortgage insurance on a $200,000 home loan drops from $225/month to $141.67/month, saving $83.33. On a larger home loan of $400,000, the difference is $166.67 per month. With the lower mortgage insurance rates, a buyer who qualifies for $400,000 might get approved for a bigger loan amount of $420,000 instead. Thus, this rate drop not only makes real estate ownership more affordable but will also help buyers to get into a higher-priced home (if desired).
Help with FHA Home Loans in Las Vegas
Las Vegas FHA home loans lower mortgage insurance rates is merely one of many changes that affect mortgage lending. Your loan officer ally to keep you informed of current programs and guide you through the mortgage process. Contact Arina Hanciulesco at Keller Williams Realty (702-306 4766 ) soldbyarinah@gmail.com) to be referred to a local loan officer.
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