Effective January 26, 2015 FHA will lower the annual (paid monthly) Mortgage Insurance Premium (MIP) from 1.35% to 0.85% on FHA loans. The savings is approximately 37% on the MIP that is paid each month with the mortgage loan. If you’re thinking about purchasing a home and are planning to use FHA financing – now is a good time to act. This is a great opportunity for first-time home-buyers.
The announcement also helps existing FHA borrowers. Current home owners in an FHA mortgage can refinance and get the benefit of the lower mortgage insurance payment.
The monthly mortgage insurance savings combined with the low-interest rate environment (please contact me for details), makes an ideal time to buy or refinance with an FHA insured mortgage. Please contact me, Art Chavez with Baseline Mortgage, at 503-422-6013 to get the process started.
The FHA mortgage insurance initiative was announced by President Barack Obama. It is designed to stimulate the national and local housing markets that include my local areas of Hillsboro, Beaverton, Portland, Oregon.