Money you can take to the bank — or wherever you like.
New rules reducing the costs of required FHA mortgage insurance mean it’s cheaper to get an FHA loan. That savings applies to new loans and mortgage refinances under a new program that reduces the cost of an FHA loan by reducing the mortgage insurance premium, MIP, tied to the loan.
Lower MIPs announced by the feds earlier this year reduced the costs of an FHA loan, including new FHA loans provided to refinance older FHA-backed loans.
In order to qualify for the lower FHA MIP, the loan must have an FHA Case Number issued on or after January 26, 2015. In other words, the lower MIP rates apply only to new FHA loans. If you are an existing FHA homeowner, the FHA Streamline Refinance could be for you. And your savings can add up quickly.
MIP remains constant for the life of your loan.
Assuming a 30-year fixed rate mortgage, for every $100,000, the savings on a mortgage refinance would be $42 monthly — about $500 each year.
If you plan to keep your mortgage for a period of seven years and your loan size is $300,000, the FHA’s new mortgage insurance premium policy will save you $10,500!
The chart below shows the savings for different loan amounts.
|Homeowner Savings Under The 2015 FHA MIP Program|
|FHA Loan Size||Monthly Savings||Annual Savings|
Get a free rate quote to see what you could save.
Get a complimentary FHA rate quote now. Seaside Mortgages aims to find you the best loan at the best rate. Call us at 904.894.6037 with any questions. We are here to help you!