The FHA MIP (Mortgage Insurance Premium) on your Home just got lowered with savings up to $900 a year
The Obama Administration is directing, via executive action, the Federal Housing Administration to reduce annual mortgage insurance premiums by 50 basis points, from 1.35% to 0.85%. January 7th, the President announced a major new step that his Administration is taking to make mortgages more affordable and accessible for creditworthy families,” according to a statement from the White House. The White House statement says that the typical first-time home buyer, this reduction will translate into a $900 reduction in their annual mortgage payment.
“Existing homeowners who refinance into an FHA mortgage will see similar reductions to their mortgage payments as well,” the statement reads. “In total, this action will help millions of families save billions of dollars in mortgage payments in the coming years, helping to support the housing market recovery.”
This is good news for my clients that were planning on closing on their new home on Monday.By delaying their closing five days they will enjoy a saving of $130 a month reduction of their MIP Insurance. The lower MIP premium comes into effect on January 26th.
FHA will temporarily approve Case Number Cancellation Requests for loans with FHA Case Numbers assigned but not yet closed to allow mortgagees to obtain the reduced annual MIP rates. Lenders may begin submitting request to cancel case number on January 15 through February 15 on single Family Housing.
Once Request is processed by FHA (the FHA Connection Case Query screen shows the “Last Action: Cancelled”),the new FHA Case Number can be ordered by the mortgagee on or after January 26, 2015. Ordering of a new case number prior to confirming the previous case number has been cancelled will result in significant delay in obtaining the new Case number
This is good news for many families saving them up to $900 a year. This is a move in the right direction toward making home ownership affordable to own home. If you are interested on purchasing a home with FHA loan Give me a call.