Mortgage Insurance Rates Just Dropped
I wanted to be the first to let you know about the new FHA mortgagee letter that was recently released reducing the annual MIP. The annual MIP has been reduced by 25 bps on a 30 yr term and by 20 bps on a 15 yr term. What does this mean? It means that borrowers monthly MI payment will be less for those that close on or after 1/27/17. 30 yr term is the most common, so see the following example: Currently a $300,000 loan with minimum down payment of 3.5% and a 30 yr term would have monthly MI of $212.50/month using annual MI factor of 85 bps. Beginning 1/27/17, the monthly MI for the same loan would be $150.00/month at the reduced MI factor of 60bps. This is great news and will allow more buying power and reduced payments for our customers. Also, the new FHA loan limit for 2017 has increased from $330,050 to $331,200.
Please keep me in mind if you have friends, family, co-workers or clients in need of a home. I am hoping to partner with you to help you achieve your personal goals in 2017!!