Posted on January 8, 2015 - 01:54 PM
by Bonnie Gilbert
I had to post this email that I received from a trusted lender today...
The White House has issued confirmation that the Administration is directing the Federal Housing Administration (FHA) to cut the annual mortgage insurance premium from 1.35 percent to .085 percent. This will bring on average savings of $900 annually for all new FHA borrowers.
“This action will make homeownership more affordable for over two million Americans in the next three years,” said Julián Castro, U.S. Department of Housing & Urban Development (HUD) Secretary. “Since 2009, the Obama Administration has taken bold steps to reduce risks in the mortgage market and to protect consumers. These efforts have made it possible to take this prudent measure while also ensuring FHA remains on a positive financial trajectory. By bringing our premiums down, we’re helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures.”
The Administration projects more than 800,000 FHA borrowers will benefit from these lower rates during 2015 while creating opportunities for $250,000 new homeowners to purchase a home over the next 3 years.
What does this mean for your clients? Assuming a FHA mortgage of $175,000 the reduction in mortgage insurance premium from 1.35 percent to .85 would be $72.92 per month. That same reduction could help the borrower finance and additional $15,745 for the same payment as the original 1.35% would have.
At $200,000 the monthly mortgage insurance premium savings would be a $83.34 or an increase of purchasing power of $17,723.
Until lenders receive the official mortgagee letter it will be hard to say if this applies to only new homeowners or if current FHA note holders will also be eligible. We still don’t know all the details but according to the statements released by the White House and the Administration all reports are looking very positive. Once we have more information we will forward you the information right away.
In the meantime, it would be prudent for you to start creating a list of potential clients who will benefit from this change. I will be on stand-by to answer any questions you may have or run potential scenarios for you!
Don’t forget – the announcement will be made at 12:45 EST today from Phoenix AZ. 2015 is shaping up to be a great year for real estate professionals!
To your success!
Senior Mortgage Banker
Atlantic Bay Mortgage Group
The City Pros, Real Estate Team
Bonnie Gilbert, Broker/REALTOR/BIC
NC Broker: 246271
Mobile: (828 )301-8267
Jeanette Syprzak, Broker/REALTOR
NC Broker: 195106
Mobile: (828) 273-6068
Bonnie is the best! She was always there for us, every step of the way. She walked us through the process with grace, both selling and buying. She is very clear about expectations and planning, has a wonderful list of resources, and went above and beyond to answer any questions or concerns. She is not only good at what she does, but also fun to be around. Highly recommended. Thanks, Bonnie!Renee~ Asheville
The sale of my daughter's house handled by Bonnie and Jeanette couldn't have gone better! They gave us great advice on staging the house and provided excellent support and follow-up all the way through the closing. THANKS, A JOB VERY WELL DONE!!Charles Binkelman, Asheville
She was so helpful and knowledgeable. She researched the area and took us to a couple other houses for sale just to make sure that we were certain that this house was the one and to help us with negotiating the final price. Our bank took forever to close the paperwork and Bonnie stood by us throughout the whole due diligence period (and the three extensions) and explained every step. She personally called our agent at the bank to make sure we were being taken care of. We loved working with Bonnie and would recommend her to everyone.Amy & Brad Huffman, Mills River