MIP Reduction SuspendedImmediately following the inauguration of Donald Trump, the Department of Housing and Urban Development (HUD) announced that the recent reduction of Mortgage Insurance Premiums(MIP) has been suspended.The announcement by HUD was made 1 hour after President Trump was sworn in on Friday, January 20, 2017.According to Housing Wire, The letter stated that the FHA will issue a subsequent Mortgagee Letter at a later date should this policy change."FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers," the letter stated. "As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts."When Ben Carson, Trump's choice to lead the Department of Housing and Urban Affairs, appeared last week before the Senate Committee on Banking, Housing, and Urban Affairs, one of the topics of discussion was the outgoing administration's recent decision to cut Federal Housing Administration mortgage insurance premiums on its way out the door.At the time, Carson said that the Trump administration plans to "really examine" the Obama administration's decision to cut FHA premiums before determining a course of action.
The Federal Housing Administration (FHA) has lowered its FHA Mortgage Insurance premiums from 1.35% to 0.85%. This represents a sizable savings for home buyers. For example, on a $250,000 loan this would result in a $104 per month reduction in payment compared to current MIP costs. The official HUD Mortgagee Letter can be found here: http://portal.hud.gov/hudportal/documents/huddoc?id=15-01ml.pdf
What does this mean for you as a homeowner? If you have an FHA mortgage it means you can lower your monthly payment with a Streamline Refinance. There are several types of Streamline Refinances available but the easiest and cheapest is the No Credit Qualifying Streamline Refinance. This program does not allow any closing costs to be added to the principal balance so that you're not borrowing more than currently owe. Here at Allegiant Mortgage we pay all the closing costs for you. There's no appraisal and minimal documentation required.
Email or call us today to find out how much we can save you with this new program update for 2015!
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