An announcement was just made that FHA will be reducing it’s FHA monthly mortgage insurance from 1.35% to .85% which is great news for those looking to buy with an FHA mortgage. If you put 5% down the mortgage insurance will be .80% for a 30 year fixed mortgage. Mortgage insurance for 15 year FHA fixed rates will remain unchanged.
***The start date for the reduced mortgage insurance will be January 26th, 2015!!! ***
What does that mean for you? If you buy with an FHA mortgage, it will reduce your mortgage payment about $110 / month on a $260,000 home in Denver.
Many experts feel the mortgage insurance change won’t impact sales of real estate since they feel the events that lead to home buying are tied to life events rather than a change to the mortgage insurance premiums.
If you would like to get pre-approved for an FHA loan now, fill out an application and we will get in touch, you can click here to do that