After the Federal Housing Administration’s great news last week that they will be lowering the premium rate on FHA Loans, it’s now imperative to refinance. You’re doing yourself a disservice if you don’t take a hard look at your mortgage and decide to save money.
Home values are rising steadily and interest rates have stabilized, after the expected rise post-election. With the drop in rates from FHA, it makes sense to get your mortgage to today’s rates.
You can save thousands over the life of your mortgage if you refinance right now, and the higher equity means that you can also take money out of the house with a Cash Out Refinance, paying off credit cards or other high-interest bills with your low-interest mortgage.
While FHA has a Private Mortgage Insurance requirement, it has dropped the annual mortgage insurance premium by 25 basis points, which will save homeowners on average $500 per year.
“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” said Housing and Urban Development Secretary Julian Castro. “This is a fiscally responsible measure to price our mortgage insurance in a way that protects our insurance fund while preserving the dream of homeownership for credit-qualified borrowers.”
What these factors mean for you matter whether you’re a current homeowner or looking to buy a new home is that you will pay less on an FHA loan today than you would have last year. If you have an FHA loan, we can take a look at it and tell you whether you can save money with a refinance. If you’re looking to buy a home, it sweetens the pot for your purchase.
If you want to refinance or buy a new home with FHA, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 and Nashville (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?