Source: Howard Hanna —
Howard Hanna Mortgage Services is pleased to share the news about an exciting decrease in mortgage insurance premiums. Starting on March 20, 2023 the Federal Housing Authority (FHA) will reduce annual mortgage insurance premiums by 0.3 percentage points from 0.85% to 0.55% for most new borrowers.
Mortgage insurance premium (MIP) payments are required on all FHA loans, regardless of down payment, to allow for more flexible qualification requirements, like a lower credit score. There are two types of MIP: an upfront MIP, paid at closing, and an ongoing MIP paid monthly as part of your mortgage payment. The monthly MIP adjusts down annually based on your remaining principal balance. The FHA is reducing the cost of the annual MIP.
Reducing the MIP rates could help new homebuyers with FHA-backed mortgages save an average of $800 a year and lower housing costs for more than 850,000 Americans, according to the U.S. Department of Housing and Urban Development.
“This change means major savings for so many of our clients,” said Duffy Hanna, president of Howard Hanna Mortgage Services.
Whom Will This Affect?
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