FHA Mortgage Insurance Premium Reduction... What does that really mean?

HUD has announced the reduction of FHA Mortgage Insurance Premiums for homeowners purchasing new primary residences effective January 27.  For most FHA borrowers getting a 30-year fixed loan, MIP will be reduced from .85% to .60%.  So what is this in real $$s? ​

On a loan amount of $350,000 we’re talking a MIP reduction from ~$250 to $175 per month and that drop can be the difference between a borrower qualifying for a loan vs. walking away empty handed.
 
Below is a more detailed Summit corporate explanation.  
HUD Reduces Annual MIP!Effective on FHA loans closing January 27, 2017 and after!Great news for your home buyers! HUD has announced they are lowering their Annual MIP rates which meanslower payments for your FHA buyers. 

What's Changing:
- HUD is lowering their Annual MIP (which borrowers pay monthly)

What Hasn't Changed:
- HUD's UFMIP (Up Front MIP) remains at 1.75% of the base loan amount and can be financed or paid in cash
- HUD's Annual MIP is in effect for the life of the loan, except for LTV's of 90% or below, at which point it is only in effect for 11 years

Note: FHA Statutory Loan Limits vary by state and county. The limits for your Collier and Lee counties can be checked here: https://entp.hud.gov/idapp/html/hicostlook.cfm
 
Courtesy of Will Dukes From Summit Mortgage