The Federal Housing Administration (FHA), a government insurer of home loans, cut 50 basis points (0.50%) from the annual premium for FHA backed loans with terms greater than 15 years. For most FHA loans this will reduce the annual premium from 1.35 percent of the loan balance to 0.85 percent for case numbers assigned on or after January 26, 2015.

This Mortgagee Letter includes a table which shows the current and new annual MIP rates by amortization term, base loan amount, and loan-to-value ratio.

For the typical FHA applicant, the reduction in premiums means a savings of about $80 on their monthly payment, according to CoreLogic’s chief economist, Sam Khater.

FHA will temporarily approve case number cancellation requests for loans with FHA Case Numbers assigned but not yet closed to all mortgagees to obtain the reduced annual MIP rates. Mortgagees may begin submitting individual case number cancellation requests under this temporary authority beginning January 15th, 2015 and ending by 11:59 p.m., ET, February 26, 2015.

Please call your HomeBridge Mortgage Loan Originator with any questions or for more information.

Related Articles

This past week was a bit rough for the bond market as home loan rates steadily ticked higher and off the best levels in three years. The coronavirus has been a tailwind to the bond market and home loan rates for the past few weeks, but this week the story…
Read More of the post Recovering From Coronavirus

Buying your first home is the biggest and arguably the most important purchase you will ever make. Preparing for that transition will require you to look at your finances in a different way. Keep in mind the following strategies to ensure your finances are in a great place when it’s…
Read More of the post How to Financially Prepare for Homebuying

The down payment is one of the most important elements of the homebuying process. Your down payment could affect your finances for years to come. In this article, we’re going to breakdown the short-and long-term impacts of your down payment and some options to move forward if your financial position…
Read More of the post How Does Your Down Payment Affect Homebuying?

The coronavirus outbreak in China continued to grip the financial markets this week. The total affected and number of deaths rose sharply throughout the week suggesting the virus is not yet contained. Stocks hate uncertainty and bonds love uncertainty. As a result, bonds traded higher to their best levels since…
Read More of the post Rates Decline Again