Lower Mortgage Insurance Rates For FHA Home Loans In Boston MA beginning January 26, 2015

It was just recently released that the mortgage insurance rates for FHA home loans is changing. This will truly help people now in the market to buy. The following are a few facts on on lower mortgage insurance rates for FHA home loans in Boston MA.

Beginning January 26, 2015

Lower mortgage insurance rates for FHA home loans in Boston MA go into effect on January 26, 2015. Any new FHA files requested on or later than that date will benefit from the reduced rates. Case numbers are usually granted upon applying for the FHA mortgage. For active case numbers, you might be able to cancel the existing one and generate a new one. Particular steps must be completed by your mortgage company to do this. Regrettably, these lower mortgage insurance rates will not apply to closed home loans. Refinancing would be necessary.

Lower Mortgage Insurance Rates For FHA Home Loans In Boston MA

Lower mortgage insurance rates for FHA home loans in Boston MA are half a percent under previous mortgage insurance rates. Rates can vary based on the down payment percentage. For home loans with five percent or more down, the mortgage insurance charge reduces from 1.3% to 0.8%. For home loans with less than 5% down, the old mortgage insurance was 1.35%. The new rate is 0.85%.

How Fees are Calculated

Mortgage insurance amounts made part of your mortgage payment are calculated by multiplying the loan value (not purchase price) by the mortgage insurance, and then dividing by 12 (months). For a typical buyer putting 3.5% down, the mortgage insurance on a $100,000 home loan changes from $112.50/month to $70.83/month, resulting in a $70.83 difference. On a larger loan of $400,000, the reduction is $166.67 per month. With the lower mortgage insurance rates, that same home buyer that qualifies for $400,000 might qualify for a mortgage closer to $420,000 instead. This PMI change not only saves home buyers money but can also allow buyers to get into a higher-priced home.

Assistance with FHA Home Loans in Boston MA

Lower mortgage insurance rates for FHA home loans in Boston MA is simply one of many changes that constantly occur in the lending industry. Your loan officer ally to keep you informed of changing options and assist you through the whole process. Contact Scott Beard at Bean Group (617-651-0081, scott.beard@beangroup.com) to be referred to a local loan officer.

About Scott Beard

Finding the right Realtor can be the difference between a happy, stress-free home buying or selling experience, and an unhappy, stressful experience. That’s why choosing the right Agent to begin with is key. I have helped hundreds upon hundreds of clients during my career and sold over $55 million in properties and look forward to putting my experience to work for you.
Contact me at any time. I look forward to hearing from you.

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