Chris Graves, Certified Mortgage Advisor

Providing Mortgage Services in MA, NH, ME, RI and FL

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Home Buyer Tips, Mortgage Information

MA FHA Loans Reduced Mortgage Insurance Rates beginning January 26, 2015

It was just recently released that the mortgage insurance rates for FHA loans is reducing. This will assist individuals now in the market to buy and will allow borrowers with current FHA mortgages to refinance with lower mortgage insurance. In this blog are a few facts on on MA FHA loans reduced mortgage insurance rates.

Beginning January 26, 2015

MA FHA loans reduced mortgage insurance rates are effective on January 26, 2015. This means that any new FHA case numbers requested on or after that date will have the new rate. Case numbers are typically received when a mortgage application is processed. For loans in progress, you may be able to cancel the existing FHA case number and request a new number. Specific steps must be followed by your mortgage company to achieve this. Regrettably, closed loans do not qualify. Refinancing would be required.

MA FHA Loans Reduced Mortgage Insurance Rates

MA FHA loans reduced mortgage insurance rates are one-half a percent below previous mortgage insurance rates. Rates can be different based on the loan to value percentage. For loans with 5% down or greater, the mortgage insurance premium was 1.3% and is now lowered to 0.8%. For loans with less than 5% down, the old mortgage insurance was 1.35%, compared to the lower 0.85% rate.

Impact of the Reduced Mortgage Insurance Rates

Monthly mortgage insurance is calculated by multiplying mortgage insurance and initial loan value, and dividing by 12 (months). For a home buyer with a minimal down payment, the mortgage insurance on a $100,000 loan lowers from $112.50/month to $70.83/month, saving $41.67/mo.  On a larger loan of $400,000, the reduction is $166.67 per month. With the reduced mortgage insurance rates, a home buyer pre-approved for $400,000 might get a higher mortgage amount of $420,000. Thus, this rate change not only makes real estate buying more affordable but may also help buyers to get into a higher-priced property (if desired).

Assistance with FHA Loans in MA

MA FHA loans reduced mortgage insurance rates is just one of many changes that continually take place in the lending industry. Your loan officer is an important resource to keep you up-to-date with current alternatives and help you through the mortgage process. As a Sales Manager at Sierra Pacific Mortgage Company, I can put my experience to work for you. You may reach me at 978-376-5389 or christopher.graves@spm1.com.

Chris Graves's avatar

Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.