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Good News for Home Buyers – MIP

Posted on January 15, 2015 by Gloria Matthews in Buy A Home, Real Estate News

HOME BUYERSYou or someone you know may be buying a home in 2015.   I’d Like to bring you a piece of  good news.  Low down payment loans are available,  yet the Mortgage Insurance Premium   MIP  has been quite high the last few years, at 1.35%  of the loan amount.  It is being reduced to .85%  this is Very ImPortant  “VIP”.

“FHA change could save borrowers almost $1K a year

The latest important factor was announced this week: The Federal Housing Administration intends to lower the annual mortgage insurance premium rate that applies to FHA-insured loans from 1.35% to 0.85%.

That may not seem like a lot, but it can make a tremendous difference to the very people that FHA mortgages are intended to help.

For example, the median price on an existing home sold in November was $205,300, according to the National Association of Realtors. Assuming a 3.5% down payment, the higher fee amounted to $222.88 a month on top of the mortgage payment. The new monthly fee would be $82.55 lower, or just shy of $1,000 a year. For a median household in the U.S., that difference is almost 2% of its annual income.

That 2% could make a critical difference to falling within the income qualification ratios required for a loan.”

Additionally, I have just been authorized to teach a home buyers course sponsored by the Washington State Finance Commission.  There is help with down payment assistance programs.    These classes are great for anybody considering a home purchase and additionally inform home buyers of numerous downpayment assistance programs.   The income limits and amounts available would suprise you!!

Call Gloria Matthews at 360-600-3042 or write to gloria@ggmatthews.com for class dates and times.   The home buyers course is 5 hours, currently on tuesday and thursday evenings, 6 to 8:30 pm.

 

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