FHA mortgage insurance premiums are not being reduced after all.
Via a January 9th press release and “mortgagee letter”, HUD announced that mortgage insurance premiums were to be cut .25% for most FHA borrowers starting on January 27th. This reduction would save the average FHA home buyer in Portland $69 per month or enable them to spend $13,000 more with the same monthly payment.
The pending reduction was the subject of my last post, in which I theorized that Trump’s nominee for Secretary of HUD, Ben Carson, would let the reduction stand. What do I know? (Evidently, not much.)
Today (this time rather quietly with no press release), HUD let lenders know that this reduction is being “suspended indefinitely”.
Well, poo. Here is an updated history of the monthly MI premiums for FHA loans.
Homebuyers with loans currently in process can expect an updated Loan Estimate showing the old, higher MI premium.