BIG Savings With FHA Loans

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FHA

The Federal Housing Administration (FHA) cut 50 basis points (0.5%) from the annual mortgage insurance premium for FHA backed loans with terms greater than 15 years. For most FHA loans, this will reduce the annual premium from 1.35% of the loan balance to 0.85% for case numbers assigned on or after January 26, 2015. Click here for the Mortgagee Letter which shows the current and new annual MIP rates by amortization term, base loan amount, and loan-to-value ratio. For the typical FHA applicant, the reduction in premiums means a savings of about $80 on their monthly payment, according to CoreLogic’s chief economist.