FHA lowers monthly mortgage insurance
UPDATE to this UPDATE:
The reduction in FHA mortgage Insurance has been (at least) temporarily paused before ever actually going into effect.
The FHA mortgage insurance rate reduction came as a giant unanticipated surprise to all of us in the mortgage world. I guess I should have figured something was up, as it appears the reduction was part of Washington’s political games.
The outgoing Obama administration people made the surprise reduction announcement with only days remaining in office. As soon as the Trump administration was sworn in, they immediately put the reduction on hold, stating it was irresponsible, and needed to be evaluated. This allowed the former administration to run around claiming how horrible the new administration was. Errr….
Personally, I think it is a bunch of crap that these people play with home owners, the mortgage industry, and the real estate industry, regardless of what side of the political fence you stand.
—————- ORIGINAL ARTICLE ——–
Minneapolis, MN: HUD/FHA has announced that the required monthly FHA mortgage insurance costs are dropping with any new FHA loan closing January 27, 2017 and after.
For most FHA home buyers, this will mean a drop from .85% monthly, to just .60% monthly.
On a $200,000 loan, that means a monthly savings of $41.00 a month!
How to calculate FHA monthly mortgage insurance:
Take the loan amount times the insurance factor, then divide by 12
Example: Loan amount X .0060 / 12 = $ Monthly MI
$200,000 X .0060 / 12 = $100 a month