FHA Lowers Mortgage Insurance Premiums

Bob Vaughan

The United States Department of Housing and Urban Development (HUD) announced Monday that the mortgage insurance premiums on loans insured by the Federal Housing Administration (FHA) will be reduced by 25 basis points for loans closing on or after January 27, 2017. The most popular down payment for an FHA mortgage loan is 3.50%, which currently carries MIP of .85% annually. With the new change, MIP will be reduced to .60%, saving someone with a $200,000 mortgage approximately $500 annually. This will result in huge savings for FHA borrowers and will also help lower debt-to-income ratios, ultimately leading to higher affordability for FHA borrowers.

Mortgage Rates Plunge to Three Year Low

Bob Vaughan

Mortgage rates plummeted to their lowest levels in three years this week.

According to the Washington Post, weak first-quarter economic growth, persistent global economic worries and last week’s anemic jobs report all contributed to pushing down bond yields. Because mortgage rates tend to follow the yield on the 10-year Treasury, home loan rates retreated.

D&V Home Mortgage offers VA home loans, FHA home loans, conventional home loans and jumbo home loans in Lee, Collier and Charlotte counties. If you are looking to get a mortgage loan in the Southwest Florida market, give us a call today to see if you qualify!