Effective January 26, 2015
FHA (Federal Housing Administration) will be lowering the annual MIP (Mortgage Insurance Premium) by .50%. The current annual MIP is 1.35% and it will be dropping to .85%. when making the minimum down payment of 3.50%.
This is certainly good news for prospective home buyers and borrowers, as this should help make home ownership more affordable for many. While we welcome this soon-to-be reduction in mortgage insurance costs, as with many things, there is more to know and more questions that need to be answered.
Give me a call if you have any questions!