The new rates, which will reduce .50% (most loans from 1.35% to .85%), are set to save homeowners thousands of dollars over the life of their FHA loans!
For example, a homeowner with a $200,000 FHA mortgage taken out after 2010 pays an $225 extra per month to cover the mandatory Mortgage Insurance Premium, or MIP. Once new rates are in place, if that homeowner were to refinance their mortgage under the current FHA MIP rate standard, they would pay just $142 per month for their monthly MIP—a savings of $83 per month.
In addition to the historic MIP rate decrease, consumers should know that mortgage rates are currently at all time lows, making now the perfect time to refinance. In fact, if our $200,000 FHA mortgage-holding homeowner referenced above refinanced his FHA from 4.5% APR to 4.0% APR, he’d save more than $200 each month between the reduced MIP and reduced mortgage interest rate.
To see how much you could save, contact an NLC Loans™ personal mortgage advisor today by calling toll-free 877-480-8050 or by contacting us online here.