Monthly Archives January 2015

FHA Reduces Mortgage Insurance Premiums

Effective January 26, 2015 FHA recently announced a reduction of 50 basis points (0.50%) on all new 30-year loans, making homeownership more affordable. This is the first time we’ve seen a reduction in MIP (mortgage insurance premium) since 2001. FHA is not a mortgage lender; it’s a mortgage insurer. Just like most insurers, the FHA collects payments known as premiums to fund the claims it pays to lenders. FHA mortgage insurance premiums are split into two categories: Upfront Mortgage Insurance Premium (UFMIP). UFMIP is paid up front at closing, equal to 1.35% of the loan. A $100,000 loan would have
Read More