FHA UPDATE: Significant Reduction in Mortgage insurance
By Robert Rauf
(HomeBridge Financial Services (NJ))
FHA Loans Just got MUCH more affordable After years of being one of the more expensive options for mortgage insurance this is welcome news. In many cases FHA will now be the less expensive option for mortgage insurance for low down payment borrowers vs conventional mortgages.The typical 3.5% down FHA loan will see the Monthly Mortgage Insurance Premium dropping from .85 to .55. (for loans under $726,200)What does that all mean in English?In my market a typical FHA borrower will likely have a $400,000 mortgage. Prior to this change the MIP would cost about $283/month and after the change it will be about $183/month - A WHOPPING $100 less per month!The FHFA that oversees the agencies has made it a mission to make homes more affordable for all. We can see that in recent changes to Con...