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2015-01-13 09:21:55
FHA Monthly Premium Drop!

By now, hopefully all of you have heard that last week FHA announced that they are reducing their annual Mortgage Insurance Premium by .5%. But some people in our industry don’t know exactly what that translates to for their average buyer. Let’s look at an example where your buyer is getting an FHA loan in the $150,000 range.

Before this change, you would take your buyer’s loan amount and multiply it by 1.35%: $150,000 X 1.35% = $2,025. Then divide the $2,025 by 12 months and that would give you the monthly amount of $168.75.

With the change, the math is the same, but with a smaller rate: $150,000 X 0.85% = $1,275 / 12 = $106.25.

That means that the exact same loan amount that closed in December at the same interest rate would have a payment that is $62.50 less. And the savings are even bigger as you get into higher loan amounts. See below:

$200,000 X 1.35% = $2,700 / 12 $225
$200,000 X 0.85% = $1,700 / 12 $141.67 or a savings of $83.33 per month.

$250,000 x 1.35% = $3,375 / 12 = $281.25
$250,000 X 0.85% = $2,125 / 12 = $177.08 or a savings of $104.17 per month!

Steve Perry with Realtypath can help you and your friends find that great home!

 
Blog Archive
2015-01-13 09:21:55
FHA Monthly Premium Drop!

2014-04-18 10:30:29
Home Prices are up in SLC


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