HUD ANNOUNCES REDUCED MONTHLY MORTGAGE INSURANCE
By Dora Griffin, NMLS 6380
(D A Griffin Financial.LLC)
HUD ANNOUNCES REDUCED MONTHLY MORTGAGE INSURANCE HUD announces reduced monthly mortgage insurance for FHA loans. It's been expected for a while there would be a change in either the monthly or up front mortgage insurance on FHA loans and now it's here.Monthly mortgage insurance is going down by 30 bps. For most homebuyers who utilize a FHA loan this means monthly mortgage insurance will go from 85 bps to 55bps of the loan amount. An example calculating savings for a $200,000 loan amount the lower MI would be a savings of $600 the first year. FHA loans have different MI levels for different loan amounts based on down payment and term. It is great to see the HUD feels they can help homebuyers with mortgage payments in this way. FHA is a great loan program for many homebuyers. Typical...