Lowered FHA Annual Mortgage Insurance Premiums Aid Home Ownership

President Obama recently announced that the Federal Housing Administration (FHA) will reduce annual mortgage insurance premiums (MIP) by 0.5 percentage points, as reported in Zillow. This is done in an effort to place homeownership within reach for more U.S. citizens.

To put this in perspective, a $175,000 home loan with less than 5% down, this newer MIP reduction will equate to a savings of $818 per year (or $3,932 over 5 years):

Lowered FHA Annual Mortgage Insurance Premiums Aid Home Ownership

New FHA loans last the entire life of the loan, whether or not you have more than 20% equity in your home.

The changes will take annual MIP from 1.35% to 0.85% for loans with less than 5% down, and from 1.30% to 0.8% for loans with more than 5% down.

The White House anticipates this shift in premiums will help more than 800,000 homeowners save on their mortgage costs, while enabling up to 250,000 new home buyers to purchase a home.

Looking to buy your first home? Want to see what the market is like for your situation? Don't hesitate to send us an email or give us a call.

Real Group Real Estate

Contact Our Team Today

Contact Us
Please enter your name!
Please enter your email!
Write your message!

Search Our Blog

 

 

Subscribe to our Newsletter


Baird & Warner

2526 N Lincoln Ave
Chicago, IL 60614

Login Form

© 2013 - 2017 Real Group Real Estate at Baird & Warner. All Rights Reserved. Designed By Geek Chicago
Baird & Warner, 2762 N Lincoln Ave. Chicago, IL 60614 - Privacy Policy