NEW FHA AND CONVENTIONAL MORTGAGE CHANGES COMING IN JANUARY!

[Kristen Haynes]

NEW CHANGES are coming in FHA and Conventional Mortgages for 2017!

FHA reduced the monthly mortgage insurance (MIP) for all closings after January 27, 2017.

The previous monthly MIP factor was .85 of the purchase price, NOW, for a standard 3.5% down FHA, it is .60! AND- this is HUGE- if you put 10% down, the MIP is no longer lifelong, but 11 years. After reaching 20% equity, the MIP goes away- just like with Conventional mortgages! That is equal to saving $33.00 a month on a $200,000 mortgage. This could end up being critical for the buyers of your properties!

Also- the Conventional mortgage conforming loan limits (non-jumbo) were also increased to $424,100 (the previous maximum was $417,000).