HUD Reduces the Cost of FHA Loans. Like the cost of oil the cost of FHA loans is falling. In its first mortgagee letter of 2015, HUD announced that the monthly premium on 30 year fixed rate loans will go down by ½ of a percent (50 bps), starting n loans with FHA case numbers issued after January 26, 2015. New monthly MIP premiums: Term > 15 Years Base Loan Amt. LTV Previous MIP New MIP ≤ $625,500 ≤ 95.00% 130 bps 80 bps ≤ $625,500 > 95.00% 135 bps 85 bps > $625,500 ≤ 95.00% 150 bps 100 bps > $625,500 > 95.00% 155 bps 105 bps Term ≤ 15 Years ≤ $625,500 ≤ 90.00% 45 bps 45 bps ≤ $625,500 > 90.00% 70 bps 70 bps > $625,500 ≤ 90.00% 70 bps 70 bps > $625,500 > 90.00% 95 bps 95 bps The reduction in premium translates to a monthly payment reduction of over $83 per month on a $200,000 loan. Home buyers can qualify to purchase larger homes. Combine the MIP reduction with the recent interest rate drop, many folks will save thousands by refinancing, especially those with 30 year FHA loans closed after the spring of 2009. (
click here to request information for an FHA Streamline Refinance). www.PaulCantor.info
