Monthly Mortgage Insurance on FHA loans will drop by almost half
Posted on January 12th, 2015 by Underwood Mortgage Group
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Starting January 26, 2015, monthly mortgage insurance (MIP) on FHA loans will drop by almost half. In two weeks, borrowers utilizing FHA financing will be able to afford a lot more house!
The Highlights:
-Annual premium is reduced 50 basis points on both purchase and refinance transactions.
-Applies to all FHA loans w/ terms greater than 15 years
-There is no change in premium on 15 year or shorter terms
-All loan types are affected except streamline refinances that are refinancing existing FHA loans endorsed before May 31, 2009
-Hawaiian homelands (Section 247) are also excluded.
There is no change to the upfront premium or the life of loan requirement.
Posted in Mortgage/Finance