Effective January 26, 2015
FHA recently announced a reduction of 50 basis points (0.50%) on all new 30-year loans, making homeownership more affordable. This is the first time we’ve seen a reduction in MIP (mortgage insurance premium) since 2001.
FHA is not a mortgage lender; it’s a mortgage insurer. Just like most insurers, the FHA collects payments known as premiums to fund the claims it pays to lenders.
FHA mortgage insurance premiums are split into two categories:
The complete MIP schedule for FHA loans of $625,00 or less, are as follow:
To add more beauty to this, rates are at their lowest levels in close to two years. It’s an amazing time to buy or refinance. If we can be of any assistance, please contact us.