FHA is set to drop the monthly mortgage insurance factor from 1.35% to .85 % on January 26th. What does this mean to the FHA consumer? A $200,000 mortgage under the 1.35% factor would have monthly mortgage insurance of $225/mo. With the 0.85% factor the monthly MI will be $141.67/mo. That is a saving of $116.67/month, this will help people who did not qualify before to qualify now, or to bump up their maximum qualifying amount by $20-30k. Good news for the housing market!