While people are talking about the savings generated by the change in the Federal Housing Administration’s Private Mortgage Insurance rate, they are throwing a lot of numbers around. The average number that’s being most commonly referred to is $900 per year. However, what does this mean to YOU? Are you going to save $900 per year on your mortgage if you call us today? Well, that depends on your home value.
Chicagoland homes are, on average, more expensive. This translates to PMI being higher, and home loan payments being higher as well. The average home in Cook County would actually save $1018 according to data from RealtyTrac. They looked at the data and found that the savings, nationally, would average $917. In higher value markets, including Chicago, New York, and Los Angeles, this number is higher. But why, exactly?
What people aren’t mentioning in all of this is this simple fact: the higher your home loan amount, the more money this saves you. PMI is based on the amount of money borrowed as a percentage. When they charge you a lower percentage, you save money every month on your FHA Loan. It’s essentially insurance for the bank against you putting down a smaller loan. It doesn’t apply toward the money you owe toward the house. If you have an FHA Loan in the Chicagoland area, you really need to call us TODAY to make sure that you can refinance at the lower PMI rates to save money. Every household can use $1018 whether it’s to pay for next Christmas, take a trip, or put it towards other expenses. Call us today at (773) 770-4727 and visit www.thehomeloanexpert.com/chicago to apply online. Nobody in Chicago makes it easier to save money on your home mortgage loan.