Some encouraging news for Florida home buyers is that the mortgage insurance premiums for FHA mortgages is changing. This will make it easier for people currently looking for a house. The following are a few facts on on Florida FHA mortgages new mortgage insurance premiums.
Beginning January 26, 2015
Florida FHA mortgages new mortgage insurance premiums are effective on January 26, 2015. Any new FHA case numbers issued on or later than that date will benefit from the new rates. Case numbers are usually created when a mortgage application is started. For case numbers already issued, you might be able to cancel and generate a new one. Particular steps must be completed by your mortgage company to accomplish this. Unfortunately, this is not available to closed mortgages. A refinance would be necessary.
Florida FHA Mortgages New Mortgage Insurance Premiums
Florida FHA mortgages new mortgage insurance premiums are 0.5% less than earlier mortgage insurance premiums. Different mortgage insurance premiums are charged based on the loan to value percentage. For mortgages with five percent or more down, the monthly mortgage insurance was 1.3% and is now reduced to 0.8%. For mortgages with less than 5% down, the old mortgage insurance was 1.35%, compared to the lower 0.85% rate.
Calculating the Difference
Recurring mortgage insurance is determined by multiplying loan value (not purchase price) by the mortgage insurance, and dividing by 12 (months). For a borrower putting 3.5% down, the mortgage insurance on a $100,000 home loan changes from $112.50 to $70.83 per month, saving $70.83. On a higher loan of $400,000, it lowers from $450 to $183.33 per month. With the new mortgage insurance premiums, that same borrower that qualifies for $400,000 might be able to get approved for a bigger loanof $420,000 instead. So, this PMI drop not only saves buyers money but may also allow them to get into a larger property (if desired).
Help with FHA Mortgages in Florida
Florida FHA mortgages new mortgage insurance premiums is simply one example of the changes that constantly occur in the real estate market. Your loan officer can keep you up-to-date with these changes and help you with getting a loan. Contact Sonny Solomon at The Keyes Company (561-247-1047, sonny@sonnysolomon.com) to be referred to a local loan officer.
