Many thanks to Shelter Mortgage for sharing this update! If you need help with financing I recommend Shelter Mortgage – please give me a call for their information!
- The monthly FHA Mortgage Insurance Premium (MIP) is being cut by .5% from 1.35% to .85% effective January 26th. This is a significant reduction and equates to an $80 monthly savings on a $200K price.
- Recall that the minimum down payment on a Conventional loan dropped to 3% last month (it is 3.5% on an FHA loan). The FHA MIP reduction makes FHA more competitive but Conventional is the better route for a buyer with good credit while FHA is the better route with average to below-average credit.
Mortgage Rate Update
Mortgage rates remain super low this week due to weaker than expected economic data, low inflation helped by a decline in oil prices, and increased expectations for bond purchases in Europe. A surprise announcement from the Swiss National Bank caused a lot of volatility, but had only a small net effect. The 30 Year Fixed-Rate remains at 3.75% Conforming (3.75% APR) and 3.25% FHA (4.737% APR).
Do you have financing questions? Please contact me at NoraSells@KW.com or 404-840-2918.
– Nora Levesque