FHA is reducing its annual mortgage insurance premium (MIP) by 25 basis points for most new mortgages with a closing/disbursement date on or after January 27, 2017.
One of the things that I have encountered throughout my career in real estate is that people are all worked up about mortgage insurance premiums, and they should be. Our money is hard earned money. Every dime counts, and owning a house is a wonderful blessing, but a blessing that continues to cost money. The big decision usually for my clients is should they go conventional with a 20% or larger down payment on the house vs. go FHA and put less money on the house.
The decision to choose FHA loans means you have to pay mortgage insurance premiums. Typically after talking to their lender they just choose to bite the bullet, put down more money and lean towards conventional loans. Kudos to FHA for making this happen, and giving buyers yet another reason to keep more money in their bank account. This decision will make it a little easier to help more buyers become homeowners!
If you know of someone who is interested in purchasing or selling a home tell them to call Lynell Holden at 707-208-6897.
“JUST SELL WITH LYNELL”
Check out the link below for the whole press announcement!
Have a great REALTIST day!