FHA reduces mortgage insurance premiums

by | Feb 11, 2015 | Blog, Mortgage & Finance

Mortgage and down paymentGood news for people buying Denver real estate: The Federal Housing Administration recently lowered its mortgage insurance premiums — a move that could save a typical FHA applicant about $80 on his/her monthly payment.

FHA has cut annual mortgage insurance premiums ½ of a percent for FHA-backed loans with terms greater than 15 years. For most, this will lower annual premiums from 1.35% of the loan balance to 0.85%. The loans must have case numbers assigned on or after January 26, 2015.

Meanwhile, that’s not the only positive news from the lending community. If you’re fretting over rising home prices, here’s a tidbit from Bankrate, an online publisher of financial data: “Even with average home price appreciation of 5%, housing is more affordable now, with lower monthly payments on a larger loan than one year ago, by virtue of lower mortgage rates.”

Combined, these items signal a better bottom line for many homeowners.

Want to learn more? Read our past blog posts about mortgage and finances.

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