January 16th, 2015
Over the past couple of years, the MIP (mortgage insurance premium) rates on FHA loans have increased, which raised monthly mortgage payments. The increase kept some homebuyers out of the market.
On January 26, FHA will reduce its MIP rate and allow borrowers to save on average $900 a year.
The government estimates the lower MIP rate will allow:
More on the story here.
The positive MIP news comes just after Fannie Mae and Freddie Mac announced a 3% down payment program for first-time homebuyers. All the changes may encourage more people to consider buying a home.
***Please share the news about the MIP rate reduction, and let me know how I can help your clients!***
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