Maine FHA Home Loans New PMI Rates starting January 26, 2015

President Obama recently announced that the PMI rates for FHA home loans is lowering by half a percent. This will help people currently looking for a property. Here is some helpful information on Maine FHA home loans new PMI rates.

Starting January 26, 2015

Maine FHA home loans new PMI rates start on January 26, 2015. This means that any FHA files requested on or later than that date will benefit from the change. Case numbers are normally issued when an application is started. For home loans already in process, you might be able to cancel the existing case number and generate a new one. There is a set procedure that must be followed by your loan officer to accomplish this. Regrettably, the new PMI rates will not apply to home loans that are already closed. Refinancing would be necessary.

Maine FHA Home Loans New PMI Rates

Maine FHA home loans new PMI rates are half a percent lower than earlier PMI rates. Different PMI rates are assessed depending on the loan to value amount. For home loans with five percent down or greater, the monthly PMI was 1.3% and is now decreased to 0.8%. For home loans with less than 5% down, the old PMI was 1.35%, compared to the new 0.85% rate.

Sample Calculations

PMI charges made part of your monthly payment are determined by multiplying the loan amount (not sales price) by the PMI, and then dividing by 12. For a typical home buyer with a minimal down payment, the PMI on a $200,000 loan drops from $225 to $141.67 per month, leading to a $83.33 difference. On a larger home loan of $400,000, the savings is $166.67 per month. With the new PMI rates, that same borrower pre-approved for $400,000 may be able to increase their loan amount to $420,000 instead. This mortgage insurance decrease not only saves buyers money but may also allow buyers to get into a more expensive property.

Assistance with FHA Home Loans in Maine

Maine FHA home loans new PMI rates is merely one example of the changes that affect home ownership. Your loan officer ally to keep you up-to-date with current options and help you with obtaining a mortgage. Contact Mini Major at Bean Group (617-877-4083, mini.major@beangroup.com) to be referred to a local loan officer.

About Mini Major

Mini views the purchase or sale of a home as a major life transition that usually evokes a wide array of challenges and emotions She brings her strong analytical, communication, and mediation skills to that process. For buyers, she helps to assess realistic goals and maps out a facilitation strategy that is uniquely designed to meet their individual styles with limited stress. For sellers, she provides honest, factual information necessary to set the right price and, together with the extraordinary resources of the Bean Group, provides state-of-the art marketing materials to present that property with appeal to the most appropriate potential buyers.

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