Focus On Financing

FHA Announces MIP Reduction

Update: 2017 MIP reduced again. Click here to read about it.

In efforts to promote homeownership, Obama announced the reduction of the Mortgage Insurance Premium (MIP) from the current rate of 1.35% to .85%.

This change is to become in effect for case numbers ordered on or after January 26th, 2015 and expected to reduce the annual premium by an average of $900 resulting in more buying power and/or a lower payment.

With Fannie Mae and Freddie Mac stepping up with new programs and changes in their existing products, FHA has not been as popular. Even though these agencies have come out with their new programs FHA will still be a product to consider for many homeowners, especially those affected by a short sale or foreclosure. FHA remains more flexible with waiting periods pertaining to short sales, foreclosures, and deed-in- lieu with 3 years of seasoning. FHA also offers the Back-to-Work program which allows a home buyer that has overcame one of these events to buy after only 1 year. The 203k rehabilitation program is also a useful program which allows a buyer to purchase a home in need of repair and renovation and finance the cost of the project into the loan amount.
FHA is also allowing people currently in the process of buying a home with an FHA to cancel their existing case number in order to take advantage of the lower MIP rate. 

Homeowners Currently Under An FHA Loan

Many people that bought homes with an FHA loan within the last year have the higher MIP rate of 1.35%. It is important to have me analyze your current loan to find out if a Streamline refinance will benefit you. Small savings with the right strategy can dramatically change the outlook of your financial future. I will look thoroughly into your current loan and coupled with your goals and objectives I will give you my recommendation paired with a Total Cost Analysis.


The following is a Total Cost Analysis that illustrates the comparison between the current MIP rate of 1.35% to the new rate of .85%. Click on the image below to view the analysis:

mortgagevid

To start a loan application click here to be directed to the Loan Application page.

 

 

February 4, 2015 by · Leave a Comment

About Steve

Steve is an experienced Sr. Loan Officer & Mortgage Planner located in Rancho Cucamonga and serving the Inland Empire and surrounding areas. Steve prides himself at being transparent with all his clients using sophisticated tools and concepts to make sure the right program is chosen. Call Steve Chavarria at 951-662-3389.

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