How CFHomes Helps You Avoid PMI Fees

Did you know FHA is raising its Mortgage Insurance 0.25% in April? Here's how you can avoid paying it: FHA has long been a great loan program for buyers whose goal is to reduce their down payment.  However, there are new prices increases on the near horizon with the FHA program.  So what's in store? Unless you are able to put 20% down, most every bank will require you pay a monthly mortgage insurance premium, called MIP for short.  On April 18, MIP fees for FHA loans went up 0.25% on every FHA loan optionavailable.  For example, this will increase the payment of a $325,000 mortgage by $68 per month or $816 per year. Since most FHA mortgages require a monthly MIP payment for the first five years, this could mean a few thousand dollars extra in total cost. Making your home as easy on your budget as possible is our  major goal here at CFHomes.  If you buy a home worth $320,000 or less, CFHomes will be able to completely eliminate these fees.  For higher-cost homes, we will significantly reduce the number of years you have to pay it.   How? Instead of borrowing one large, higher-interest mortgage loan from a bank, you replace a significant portion of it with the $75,000 CFHomes Down Payment Assistance. Your mortgage loan from a bank becomes less than 80% of the home price, and you don't have to pay the mortgage insurance fees! Not paying these fees can translate to hundreds of dollars in savings each month. This is just one of the ways CFHomes helps to keep your monthly costs low.  Please don't hesitate to get in touch with us if you have further questions about MIP and how it impacts your home purchase.