For those considering a FHA mortgage, good news has arrived. FHA mortgages currently are structured in a way that buyers incur additional annual mortgage insurance costs for the life of the loan. However, President Obama announced last week that FHA would reduce the annual Mortgage Insurance Premium (MIP) by 50 bps for all mortgages with a case number assigned on or after Monday, January 25, 2015.
What this means is that if you are applying for your mortgage on or after this date, you will receive the lower MIP. On a loan of $164,050, the monthly mortgage loan payment will be reduced by $68/month due to the lower MIP. This will have significant savings over the course of the loan!
If you have further questions about this change or any financing questions related to your purchase of a home, please contact me here. This is a great time to buy while rates are still historically low!