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MIP Reduction
Lower Your Mortgage Insurance Premiums
Lower Your Mortgage Insurance Premiums

Lower mortgage insurance premiums (MIP) can mean more money in your pocket.

Whether you’re refinancing, purchasing your first home, or buying your next home, we can help you take advantage of the newly lowered, mandatory monthly mortgage insurance premiums (MIP). The good news is the Federal Housing Administration recently dropped the cost from an average of 1.35 to 0.85.

Looking to purchase your first home?

For the first-time homebuyer, this MIP decrease translates to a $900 reduction in annual mortgage payments on average. It also increases your purchasing power by about $18K. Embrace Home Loans will ensure you get the most value out of your new FHA home loan.

I'm Interested

 

Recently closed on a FHA Loan?

You can benefit, too. If you closed your loan on June 3, 2013 or after and currently have a 30-year mortgage, you can refinance and lower your MIP. Who doesn’t want lower monthly payments? When you refinance with Embrace, you can get a new, lower rate mortgage with better terms, and reduce your monthly payments.

How long does MIP last?

The lifespan of your FHA MIP reduction depends on a variety of factors, including when you applied for an FHA loan, the loan terms (15-year, 30-year, etc.), and whether you put down more or less than 10%-20% when closing. Generally, if you put less than 10% down, the MIP duration will last the full length of your home loan. If you put more than 10% down, your MIP reduction could last 11 years, though some extensions may apply. The chart below will help you figure out how long your MIP Reduction could last.

I applied for FHA loans prior to June 3, 2013:

Your Original
Loan Term
Your Original
Down Payment
Your MIP
Duration
20, 25, 30 years Less than 10% 78% LTV based on original purchase price (5 years minimum)
20, 25, 30 years 10% to less than 20% 78% LTV based on original purchase price (5 years minimum)
20, 25, 30 years 20% or more 5 years
15 years Less than 10% 78% LTV
15 years 10% to less than 20% 78% LTV
15 years 20% or more No MIP

 

I applied for FHA loans on or after June 3, 2013:

Your Original
Loan Term
Your Original
Down Payment
Your MIP
Duration
20, 25, 30 years Less than 10% Life of loan
20, 25, 30 years 10% to less than 20%, or 20%+ 11 years
15 years or less Less than 10% Life of loan
15 years or less 10% to less than 20%, or 20%+ 11 years

 

Are you eligible for an MIP Cancellation?

If you applied for your original FHA home loan prior to June 3, 2013, you may be able to perform an MIP Cancellation (also known as MIP Elimination) once you hit the 5-year mark and, in some instances, 78% LTV.

We can explain how you might benefit from the recent MIP reductions, and act as an experienced guide through every step of the loan process.

Call Embrace today at 800-620-6292 to speak with one of our knowledgeable Loan Officers and learn more about your loan options. Or fill out our no obligation form and one of our specialists will contact you.

A home loan that’s
just for you

“Tom made our buying experience a true pleasure. We had some difficulty getting financed, and Tom came to the rescue and made everything work. He is so professional and knowledgeable about the whole process of getting a mortgage and insurance. No matter what the situation is, I would highly recommend him for all your mortgage needs. If it can be done, he will find a way to get you into your dream home.”
- David S.