Trim Your Mortgage Payment by Spring!

Trim Your Mortgage by Spring

If you currently have an FHA loan, you’ve probably heard about how refinancing your mortgage will lower your payment or how switching to a conventional loan will save you money. We’ve taken the time to simplify it and explain exactly how making the switch puts more money back in your pockets!

You’re probably very familiar with MIP…especially because you’re paying it every month! One of the provisions of FHA loans is the required Mortgage Insurance Premium (MIP). The Federal Housing Administration collects a premium each month from all borrowers as a type of mortgage insurance. This money goes into the Mutual Mortgage Insurance Fund as money used to pay mortgage lenders should a borrower default on their loan.

Are you ready for the good news?

You can eliminate your monthly Mortgage Insurance Premium and lower your monthly payment. Correct! You may not need to keep paying monthly mortgage insurance premiums anymore. By eliminating your monthly MIP, you can significantly lower the total amount it will take to repay your mortgage, and lower your mortgage payment every single month (saving between $100-$400/month). You don’t need to feel stuck with the FHA mortgage you took out years ago. By switching to a conventional loan, you can eliminate your monthly mortgage insurance premium and with rates at records lows, you might even lower your interest rate too!

Before you can make the switch from an FHA loan to a conventional loan, you will need to find out how much equity you have in your home. If you have at least 20% equity in your home, you should strongly consider refinancing to a conventional mortgage to reduce your monthly payments. Even if your new loan has the same interest rate, you won’t have to pay the MIP anymore, which will lower your out of pocket cost each month.

Trim your mortgage payment before you write your next check!

Switching from a FHA loan to a conventional mortgage will save you thousands over the life of your loan. Talking to one of our Personal Loan Consultants is the best first step to finding out what options are available to you and which of those options best fits your needs. We will show you exactly how much you can save every month and walk you through the process every step of the way.