Savings for FHA Buyers

In an announcement this week, buyers who obtain an FHA mortgage will see the cost of monthly mortgage insurance adjusted downward. The anticipated average yearly savings is $800. This will also help buyers qualify for a higher loan amount. When qualifying for a loan, the percent of your monthly debt versus your monthly income is one of the major determining factors.  The monthly amount of your mortgage insurance is included in your loan payment, but at the same time it is included as a monthly debt when qualifying for the loan. Lowering this cost will directly affect the ratio of your monthly debt to income.

Read the full article Here

Credit: MortgageNewsDaily By: Matthew Graham