Great news for FHA buyers!!!
The Federal Housing Administration (FHA), a government insurer of home loans, cut 50 basis points (0.50%) from the annual mortgage insurance premium for FHA backed loans with terms greater than 15 years. For most FHA loans this will reduce the annual premium from 1.35 percent of the loan balance to 0.85 percent for case numbers assigned on or after January 26, 2015.
This Mortgagee Letter includes a table which shows the current and new annual MIP rates by amortization term, base loan amount, and loan-to-value ratio.
For the typical FHA applicant, the reduction in premiums means a savings of about $80 on their monthly payment, according to CoreLogic's chief economist, Sam Khater.
Please call me with any questions or for more information.
Kimberly HendrySr. Mortgage Loan Consultant
NMLS# 288635 6925 South Union Park Center, Suite 150
Cottonwood Heights, UT 84047
Office: 801-312-8080
Mobile: 801-688-0599
Fax: 801-734-8815
