After 2 years, FHA announces the reduction of MIP as of January 27, 2017. They are wanting to expand home ownership and help existing borrowers.
What that means for you?
The MIP is still for the life of the loan BUT….
Lower mortgage payments if you refinance into a new FHA loan.
Lower mortgage payments if you haven’t purchased yet and are using FHA financing.
Contact us and we can run the numbers to see if it makes sense for you to refinance and what your new payment looks like.
FHA ANNOUNCES CHANGE TO ANNUAL PREMIUM
Summary: FHA is reducing its annual mortgage insurance premium (MIP) by 25 basis points for most new mortgages with a closing/disbursement date on or after January 27, 2017. See below for the full schedule of the new premium rates announced and refer to FHA’s mortgagee letter.
· HUD Announcement: https://portal.hud.gov/
hudportal/HUD?src=/press/ press_releases_media_ advisories/2017/HUDNo_17-003
· Mortgagee Letter: https://portal.hud.gov/