Beginning with FHA numbers drawn January 26th of 2015 the Monthly Mortgage Insurance Premium (MIP) will lowered from a factor of 1.35 to a factor of .85. Let’s do the math.
for a $100,000 mortgage the current premium is $1350 per year divided by 12 or $112.50 per month. With the new premium the monthly would be $850 divided by 12 or $70.83 per month. That’s a saving of $41.67 per month. For Upstate NY areas of Albany, Saratoga Springs, Schenectady, Troy and Malta the average home sale is around $200K so the actual savings is double that!
For consumers it puts FHA back in the running as a viable option with monthly payments now compettitive with conventional rates. The down side of an FHA mortgage still remains the fact that the mortgage insuranc is permanent, no matter what you owe!
The bottom line is to choose your Mortgage Professional carefully. The Mortgage Loan Originators at Victory Funding near Saratoga Springs, NY are experts at finding the right loan program for their borrowers!
For the FHA letter click here. http://portal.hud.gov/hudportal/documents/huddoc?id=15-01ml.pdf
