Libertyville Real Estate Agent Jan Leasure talks about how the FHA has reduced the monthly mortgage insurance rate to .85%, allowing you to refinance and save thousands of dollars each year on your mortgage payments.
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If you have an FHA mortgage that was originated between 2010 and 2014, I will be calling you to go over how much you can save by refinancing on your home this spring.
Mortgage insurance is the fee you pay on your mortgage payment if you purchased your home through FHA with 3.5% down. Mortgage insurance allows homeowners to refinance with just 3% equity in their home. The best thing about mortgage insurance is that the FHA has recently reduced the monthly insurance calculation from 1.35% to .85% on 30-year fixed loans.
What does this mean for you? Well, for every $100,000 you borrowed before the decrease, you were paying $122/month of your mortgage payment in mortgage insurance. Now, if you refinance, that mortgage insurance will be reduced to just $71 a month. This will save you money on every payment, and thousands of dollars throughout the year.
If you have any questions, be sure to give me a call or send me an email. I always look forward to hearing from you!
