FHA has announced that they are reducing their mortgage insurance premiums across the board by 30 basis points. Mortgage Insurance can often be a dealbreaker in securing an FHA loan, depending on down payment and credit score, but this will help immensely in being competitive to conventional financing.

As an illustration, if your loan amount is $600k and you put down 3.5%, the monthly MI you were paying on an FHA loan prior to this change was $425. With the change, it is now $275, so it translates to monthly payment savings of $150. It’s nice to get some good news like this in a rising rate environment.