Great news for real estate! Buying a home is now more affordable for anyone considering an FHA loan.
Today the Department of Housing and Urban Development (HUD) released an executive order that begins some revisions of mortgage insurance guidelines.
Part of the order includes a mortgage insurance rate cut of 0.5% annually, which equates to hundreds of dollars in savings per month.
Mortgage Insurance, commonly called PMI or MIP, is extra insurance required on all FHA loans. It insures the mortgage bank in case you default on your loan. Premiums can be very expensive, but FHA loans make buying a home easier, so many people end up paying mortgage insurance.
If you already have an FHA loan, your insurance rate isn't automatically reduced, but you may be able to get a streamlined FHA refinance that will reduce the rate. We can direct you to a great mortgage rep for this. By the way, 30 year mortgage rates are still in the low 4% and high 3% range.
This great news, in combination with mortgage rates at 19-month lows, is sure to bolster the real estate market. It has never been a better time to make a move!
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