FHA Mortgage Insurance Rates Dropped!!

1What is Mortgage Insurance?

Mortgage insurance is an insurance policy that protects the lender in case the buyer defaults on the loan. This policy is required on loans when a buyer makes less than a 20% down payment. FHA annual mortgage premiums are a part of the monthly mortgage payments along with principal, taxes, and interest

2

Changes

The Federal Housing Administration’s (FHA)annual mortgage insurance rate is currently 1.35%. However, guidelines put in place this will month will reduce these annual premiums to 0.85%. This reduction may cause a significant savings for FHA borrowers and are available for FHA loan case numbers assigned on or after January 26, 2015.
        

 

How Can This Save Money3

Bottom line, this rate change can cause a substantial savings for the homebuyer. On a $170,000 home, the savings would be approximately $800 per year. This can add up substantially over the life of the loan. For more information about this program and to get approved contact Shawn Daughtry at shawn.daughtry@amerisbank.com or 803.665.5119. He will be able to help with the approval process and give more information on how to can own a new home with minimal down payment and no closing costs.