Lower Mortgage Insurance Premiums for FHA Loans
Great news in 2023 – Mortgage Insurance will cost less on new FHA home loans
Financing a home just became more affordable for hundreds of thousands of buyers!
Beginning March 20, most FHA loans will carry lower mortgage insurance premiums. The average FHA borrower will save $800 per year.* Costs are based on loan amount, so the actual savings may be more or less than the average.
With lower costs, you’ll save on your monthly payment which will decrease your debt-to-income ratio!
Here’s a little background:
- FHA loans can often accommodate borrowers with lower credit scores, income and cash-to-close than conventional loans.
- FHA loans carry mortgage insurance (MI) as an added monthly cost for the life of the loan. With this change, MI premiums will fall by 30 basis points, or 0.3% the value of the loan.
- The reduction applies to all eligible property types, including single family homes, condominiums, as well as to all acceptable down payment levels and maximum loan amounts.
If you or someone you know has been unable to qualify for a mortgage due to income or has hesitated because of higher rates, it’s a good time to take another look.
Reach out to our award winning team today to discuss your unique situation!
*Savings are based on the average FHA borrower purchasing a one-unit single family home with a $265,000 mortgage, according to HUD.