2015 is a great year for refinancing and to buy a home as well! Many changes happened in the last couple of months for the benefit of the current home owners and new buyers.
For existing FHA loan home owners, they could refinance their mortgage to a conventional loan (which has lower MI %) and eliminate their current MIP factor of 1.35% they are currently paying a year .
For purchases, FHA lowered their monthly MIP from 1.35% to .85% which is a lot of savings in a monthly basis, how so? example:
Existing FHA Loan of $100,000 at 1.35% monthly MIP is $112.50 – This is a great time to refinance and eliminate it
New FHA Loan of $100,000 at .85% monthly MIP is $70.83 – If first time home buyer the payment is better than before in FHA (if they must get an FHA loan due to its benefits for first time home buyers).
Refinance FHA into a conventional loan, eliminate the MI or get a lower MI payment based on a lower loan to value (LTV), lower rates and lower MI insurance paid in conventional loans. The savings could be a lot of money every year!
If you still have any questions, please feel free to contact me and I’ll be happy to answer your questions!