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FHA Mortgage Insurance

2015 FHA Mortgage Insurance

The one thing you can count on when it comes to the mortgage industry is change.  Change in mortgage interest rates, change in loan guidelines, change in loan programs, etc.  Changes in FHA Mortgage Insurance are no exception.

Today marks a milestone for FHA Mortgage insurance premiums.  Effective with case numbers dated January 26, 2015, the monthly mortgage insurance premiums will be changing. This time to benefit of the home buyer.

2015 FHA monthly mortgage insuranceHow will the change to the FHA Mortgage insurance premiums impact you if you?

As I showed in this previous post regarding the upcoming change, the drop in the monthly FHA mortgage insurance premiums will have a significant positive effect in the total monthly payment of those that utilize FHA to finance their purchase or refinance their home.

History-of-FHA-MI

 

 

 

 

Changes to FHA Mortgage insurance premiums are nothing new.  HUD (Housing and Urban Development) has made changes to the FHA programs approximately 8 times since 2008.

 

 

 

 

In June 2012, higher FHA Mortgage Insurance Premiums were enacted for loans over $625,500.

A year later, in June 2013, the rules changed regarding the requirements and ability of a homeowner to request the cancellation of monthly mortgage insurance.

FHA MIP Cancellation

There is no doubt that changes to FHA guidelines and policies will continue to come our way. The mortgage industry is like a living organism reacting to the economic climate, the performance of current homeowners, and of course, the “wisdom” of the lawmakers in Washington DC.

If you have been sitting on fence waiting for the perfect time to purchase or refinance, now might be a good time to jump off that fence.  Take advantage of interest rates that are near 19 month lows. Benefit from the lower mortgage insurance premiums.

Contact me for additional information about loan programs and options that might be available to you.

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