Corey Scott at Cumberland County Mortgage passed on some good news regarding FHA loans this morning. It gives a little more buying power to anyone using this loan product which is a great thing since mortgage rates seem to be on the rise over last year.
Have a great January, Maine Winter is here!
Just wanted to let you know that FHA announced about an hour ago that they are lowering the annual mortgage insurance premium (MIP) effective 1/27/17 for all loans by 25 basis points.
What does this mean for your clients? This is going to lower the overall monthly mortgage payment that they would have to pay and either save them a few dollars per month or allow them to push their budget a little higher.
FHA has had four years in a row of super financials after getting crushed in the mortgage crisis, and are finally passing on some of the savings to consumers!
Here’s a scenario assuming a $150k purchase with 3.5% down (typical standard FHA loan):
current monthly mortgage insurance premium: $102.53/month
new monthly mortgage insurance premium: $72.38/month
In this scenario, they are saving about $30/month or $360/year.
On a $250k purchase, here are the numbers:
current monthly mortgage insurance premium: $170.89/month
new monthly mortgage insurance premium: $120.63/month
This is over $600/year in savings!
Overall – some very good news – please let us know if you have any questions or if there is anything we can do to help!
Corey Scott, Cumberland County Mortgage