FHA Mortgage Insurance Premium Reduction
FHA dropped the cost of mandatory monthly insurance premiums from an average of 1.35 to .85 which is a total of 50 basis points. This is significant to the consumer whether you are newly financed or looking to purchase.
What does this mean to someone looking to purchase?
For the typical first-time homebuyer, this reduction will translate into a $900 reduction in their annual mortgage payment and also increases the purchasing power by about $18K. This means there couldn’t be a better time to purchase.
What if I recently closed on an FHA loan? Refinance now, here’s why.
• Lowered monthly insurance payments: Immediate savings on your monthly mortgage insurance equals a lower monthly payment, period!
• Reduced Interest Rate: Depending on when you financed your loan you will likely be able to refinance into a new lower rate, lowering your monthly payment even more.
• Increasing Home Values: With an increase in home values across the country you could use the increased equity in your home to consolidate your high interest debt into one lower monthly payment. You could use the extra cash to do some much needed repairs or re-do a kitchen or bath which in turn will increase your equity.
• Appraisal: There is no appraisal needed with a rate and term loan. (Some exclusions may apply.)
If you closed your loan June 3, 2013 or after and currently have a 30 year mortgage you need to call to see how much you can save with this reduction.
Call us today at 800-620-6292