FHA reduces mortgage insurance rate – In order to compete with conventional loans, FHA has reduced the cost of mortgage insurance that is applied to FHA loans. It’s still higher than it was before 2008, but now it’s more competitive.
But how much will this save a typical borrower? Here is an example sent to me by my lender. Today HUD has come out with an official notice. This is for FHA loans and applies to FHA case numbers ordered on or after 1/26.
The cost of the monthly Mortgage Insurance is being reduced by .5%. Example differences:
$100,000 loan amount => $41.67 less per month
$200,000 loan amount => $83.33 less per month
$300,000 loan amount => $125.00 less per month
$400,000 loan amount => $166.67 less per month
Considering the really low interest rates that we now have, this is just one more reason to buy a home this year.
search for Nashville real estate or give me a call. Make this the year you find your dream home.
