Flower Mound Mortgage Company -Premier Nationwide Lending – FHA MIP Reduction
In the last 10 years, we’ve seen FHA increase their up front mortgage insurance and their annual MIP (annual is paid monthly). This is the first time in many years we’ve seen a benefit to the client with FHA changes. The Mortgage Insurance Premium factor will be reduced by 50 basis points. This means that if you are buying a house in the North Texas area, and you are putting down the minimum of 3.5%, the factor will go from previous 135 basis points to 80 basis points. Previously your MIP payment would have been $112 a month on a $100,000 loan. With the reduction in the MIP factor by 50 basis points, your new MIP monthly would be $70.83. That is a monthly savings of $41…you can see that is pretty significant. Changes will be effective for FHA loans started (case numbers ordered on or after Jan 26th, 2015.
FHA Mortgage Insurance Factor Chart – Previous vs New Rates