FHA Mortgage Insurance Premium Changes, What's The Real Deal?

By
Real Estate Agent 276682

 

FHA LoansThere is a lot of Talk about the FHA Mortgage Insurance Premium or Monthly PMI in the media. The General Spin is that is so horrible and the new administration is costing home owners millions of dollars. Here's the facts without the media spin or opinions:
 
1) If you already purchased a home, neither a reduction or increase would effect you.
2) This only effects new purchases or refi's
3) Did anything change? Nope, Nothing Changed at all. The PMI Rate will remain exactly the same as it was.
 
The FHA PMI reduction was to take place on 1-27-2017. It was put in place by Castro on his way out the door just before Carson took over FHA. It was not sustainable, remember in 2013 when FHA needed over a 1 billion $ bailout? They just recently met their reserve requirement.
 
What's the bottom line?
 
If the reduction in FHA PMI would have remained it would only have reduced the total payment on a $200,000 loan amount by a total of just $40.23.
 
I am all for responsible home ownership and lending, if $40.23 makes the difference between affordable and not affordable maybe its time to have a heart to heart with your lender about why they are putting you into a home you truly can not afford? Better yet, just call me and I will take a look at everything for you to make sure you are being guided in the right direction. Last thing I want to ever see is someone being set up to fail. Especially a First Time Home Buyer.
 
NMLS#856640
 
For Immediate Help Or Second Opnions On Your Mortgage Quote, Click the link below
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                                        Steve Fingerman, E Loans Home Mortgage

Steve Fingerman

President

NMLS #276682

E Loans Mortgage Inc

4117 Mariner Blvd

Spring Hill FL, 34609

Office 352-688-7949 Cell 727-946-0904

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Comments (1)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Steve, I have an FHA buyer UC now, and his payment will jump $90 because it was repealed, he was bummed.

Jan 23, 2017 10:23 AM
Steve Fingerman

It's the same payment it would have been, it's just that the lender disclosed the lower PMI payment on the assumption of the prior Mortgagee letter which would have lower it for closings after 1-27-17. The lender can choose to lower the rate by .125 and it will offset the difference. Most of us usually have at least that bit of leway :) On that size loan, I would do it in a heartbeat to keep my borrower happy and referring more business

Jan 24, 2017 06:58 AM

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