MIP Reduction Means Opportunity to Save
On February 22, the Department of Housing and Urban Development announced a 30 basis point reduction in mortgage insurance for FHA loans. Mortgage Insurance Premiums that used to be at 85 basis points are now dropping to 55. This will lower the amount required for monthly payments on mortgages across the United States.
According to the U.S. Department of Housing and Urban Development, “FHA plays a critical role in providing access to homeownership for millions of Americans, particularly for first-time homebuyers and underserved communities.”
Through this change, minority homebuyers should be more capable of buying a home, and buyers could save up to $800 annually in housing costs.
If you’re interested in how this change will affect you, reach out to one of our loan officers for more information!
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