PMI (Private Mortgage Insurance) cut in 2017

By
Real Estate Broker/Owner with Spears & Associates Real Estate Team BK 3052925

FHA due to cut Rates

FHA

Something that will help FHA borrowers is a reduction in the rate being charged for PMI insurance. As of Januarty 27th 2017 the rate will drop from .85% to .6% which is great news for borrowers. This change will effect the debt to income ratio which gives the buyer more buying power. As per Inman news this will  save borrowers $500 this year. 

 

FHA Benefits

The benefits of an FHA loan are lower downpayment is required as well as lower credit scores. Also these loans are guaranteed by the FHA Federal Housing Administration.  The guidelines are set to help people that have good credit but do not qualify for a conventional loan. (20% down) Maybe they don't have the down payment to do a conventioanl loan. Often these borrowers can be first time home buyers or in a lower income bracket.

 

Is it affordable for the FHA

One of the reasons the rates went up was due to the number of loans that were defaulted on between 2007-2009. The FHA had to make sure that they had enough funds to back the loans that they were insuring. In the last 4 years the FHA mutual mortgage fund has improved which is the reason for the reduction in the rate. 

 

For more information on FHA Loans
Click Here

 

 

 

This content created by Barbara VanderMeulen Lead Buyer Specialist

 

We would love to hear your comments and thoughts and let us know how we can help you understand the process of buying a home.

Helping  you find your next home in Florida

Working with Happy Buyers!

//

Posted by

Andy Spears  
Broker Owner, CDPE, GRI, MBA
RE/MAX Ultimate Realty
Direct:  (772) 263-2515
Email:  AndySpearsFL@gmail.com

      

 

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Tags:
first time home buyers
fha loans
low down payments

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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.

The cut is good to see as it was extrememly high reguardless of the situation.

Jan 12, 2017 03:51 PM #1
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