President Obama issued a Fact Sheet today outlining the changes to the FHA Annual Mortgage Insurance Premium (MIP) - from 1.35% to 0.85%.
This 1/2% reduction will make homeownership more affordable for many people. A home buyer with a base mortgage of $150,000 would save $62.50/month on their monthly mortgage payment.
It is estimated that about 800,000 homeowners will take advantage of these lower MIP rates in the first year alone. And, this decrease will create an opportunity for an additional 250,000 homeowners to purchase a home over the next three years.
These new rates are not yet in effect but will be soon. As soon as they are I will update this blog.
Please contact me with any questions at 708.473.7688 or BarkerLoans@gmail.com.
