FHA Mortgage Loan Insurance Is Becoming Cheaper

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!

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About Dave Slater

Dave Slater is a Senior Loan Officer at Academy Mortgage in Colorado Springs and would be happy to help you get pre-qualified for a new home loan, V.A. Loan, re-finance, and much more. Call him at 719-522-6952 or send him an email at dave.slater@academymortgage.com.