Jan 092015
 

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

FHA officially announced today it’s lowering its max monthly mortgage insurance premium from 1.35% to 0.85%. That’s great news for folks looking for a low down payment loan. The change is effective for FHA loans registered on or after Jan 26th.

But, what if you have an FHA loan already in process? Can you take advantage of the lower MI rate? Yes, you can. FHA says that for the next 30 days it will allow lenders to cancel active registrations – FHA calls them case numbers. Once the case number is cancelled, your lender can re-register your loan with the lower MI rate.

The MI rate change only applies to loan terms greater than 15 years. The MI rate for 15-year loans remains 0.45% for down payments of 10% or more and 0.7% for smaller down payments.

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