It was just recently published that the mortgage insurance premiums for FHA mortgages is reducing. This will truly help home buyers currently looking. In this blog are some facts on on NH FHA mortgages decreased mortgage insurance premiums.
Effective January 26, 2015
NH FHA mortgages decreased mortgage insurance premiums are effective on January 26, 2015. Any FHA case numbers requested on or after that date will benefit from the new rates. Case numbers are typically created when the mortgage application is started. For mortgages in progress, you may be able to cancel the existing FHA case number and request a new one. There is a set process that must be completed by your lender to achieve this. Regrettably, the decreased mortgage insurance premiums will not apply to closed mortgages. A refinance would be required.
NH FHA Mortgages Decreased Mortgage Insurance Premiums
NH FHA mortgages decreased mortgage insurance premiums are one-half a percent under earlier mortgage insurance premiums. Different mortgage insurance premiums are charged depending on the down payment percentage. For mortgages with 5% or more down, the mortgage insurance premium was 1.3% and is now changed to 0.8%. For mortgages with less than 5% down, the mortgage insurance premium drops from 1.35% to 0.8%.
Impact of the Decreased Mortgage Insurance Premiums
Monthly mortgage insurance is determined by multiplying the loan value (not sales price) by the mortgage insurance, and dividing by 12 (months). For a typical home buyer with a minimal down payment, the mortgage insurance on a $200,000 loan adjusts from $225 to $141.67 per month, saving $83.33. On a higher home loan of $400,000, it changes from $450 to $183.33 per month. With the decreased mortgage insurance premiums, a buyer who qualifies for $400,000 may get a higher loanof $420,000. Thus, this mortgage insurance drop not only saves buyers money but can also allow them to get into a more expensive home.
Assistance with FHA Mortgages in NH
NH FHA mortgages decreased mortgage insurance premiums is simply one example of the changes that affect mortgage lending. Your mortgage consultant ally to keep you informed of important changes and help you with the whole process. As a Marketing Manager at Accurate Title, I can put my experience to work for you. You may reach me at 800-639-4405 or firstname.lastname@example.org.