Reduction in FHA Mortgage Insurance Premiums
President Obama announced today during his visit to Phoenix that the FHA will be reducing FHA Mortgage Insurance Premiums for FHA mortgage loans. The reduction will take the factor used to calculate monthly MIP from 1.35% to .85% for FHA purchase loans. Details regarding whether the MI factor will be different for borrowers refinancing with an FHA mortgage loan have not yet been announced, but under today’s MI factor both purchases and refinances utilize the same factor in most cases. For additional information please take a look at the article linked below and feel free to to comment with any questions that you might have or send us an email at firstname.lastname@example.org.
UPDATE 1/9/2015: The changes to FHA monthly mortgage insurance premiums will take place on 1/26/2015. For more information please see the mortgagee letter issued by the FHA today.