Reduced FHA Loan Mortgage Insurance Premiums

Same Great FHA Financing with Lower Premiums

The Federal Housing Administration (FHA) has reduced its mortgage insurance premiums, thereby helping borrowers — those looking to refinance as well as those looking to buy — save on annual homeownership costs. The change took effect on January 26, 2015 and reduced the amount of private mortgage insurance borrowers have to pay on home loans by half of a percent. The reduction is applicable on mortgages with terms greater than 15 years.

The chart below shows potential savings based on an FHA home loan with a loan-to-value (LTV) greater than 95% and a term greater than 15 years.

LOAN AMOUNT PREVIOUS MIP (1.35%) NEW MIP (0.85%) EST. MONTHLY SAVINGS EST. ANNUAL SAVINGS
$150,000 $168.75 $106.25 $62.50 $750.00
$200,000 $225.00 $141.67 $83.33 $999.96
$250,000 $281.25 $177.08 $104.17 $1,250.04
$300,000 $337.50 $212.50 $125.00 $1,500.00

Our team is ready to help you identify and obtain the right home loan or refinancing solution for your needs. Whatever your situation, we’ll be by your side from start to finish, keeping you informed and getting your loan closed quickly.


Get Pre-Qualified Now