FHA Home Loan Mortgage Insurance

Getting an FHA home loan in California just got easier. FHA home mortgages have always been popular options as a way to buy a new home with a low down payment. The problem is you have to pay mortgage insurance to have FHA insure the new home loan. Great for first time home buyer in California, the FHA loan gets you in the home of your dreams but at a high cost. Recent changes by FHA now make the program a better option.

Recently FHA lowered the amount of insurance cost associated with an FHA new home loan. Normally, there is a 1.75% upfront cost to originate the FHA loan and also an ongoing fee added to your monthly mortgage payments. FHA has now lowered the annual insurance premium making the FHA loan much more attractive to home buyers.

FHA Mortgage Refinance

FHA home loans originated in the past that have the higher annual mortgage MIP can now refinance their home loan and reduce the monthly payment. In a typical FHA home loan situation, a $300,000 mortgage would have up to $300 of MIP added to the monthly payment. Now with the new FHA announcement, that MIP would only be about $180 per month saving the borrower about $120 per month. Over 30 years that would add up to a hefty amount.

If you are shopping for a California home loan and are considering an FHA home loan in California, let us show you alternatives to this option. Mortgage interest rates for California are low now and looking at alternatives to an FHA mortgage Porter Ranch is a smart decision. We can also show you how to get rid of mortgage insurance. If you have a FHA loan now and want to do a home loan refinance in California, there are other options to consider.