OCEAN TOWNSHIP, N.J., March 07, 2023 (GLOBE NEWSWIRE) — via InvestorWire — Advisors Mortgage Group (“Advisors” or the “Company”), based in Ocean Township, New Jersey, today comments on the recent announcement from the Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), that starting on March 20, 2023, it is reducing annual mortgage insurance premiums by 30 basis points on FHA-insured mortgages. The reduction will benefit approximately 850,000 borrowers over the next year, which will save these families an average of $800 annually.
How does this translate into savings for a buyer looking to get an FHA-insured mortgage*? If an individual were to buy a home at a sales price of $400,000 and put 3.5% down, the mortgage would be $386,000. The current mortgage insurance premium (MIP) would be $271.89 per month. Once the 30 basis point reduction takes place, the MIP will be $175.93 per month. That is a savings of $1,151.52 per year. This change applies to new loans only starting on March 20, 2023.
This change comes on the heels of a few other recent updates by HUD to make homeownership a reality for more Americans. The FHA’s underwriting policies were changed to allow lenders to use positive rental history in evaluating applicants’ creditworthiness for an FHA-insured mortgage. This will make it easier for first-time homebuyers to qualify for a mortgage. HUD also changed the way in which student loan debt is evaluated in FHA mortgage underwriting, which will enable more borrowers who are making payments on student loans to qualify for an FHA mortgage.
Erika Whalen, Advisors’ underwriting manager, states, “These steps by HUD and the FHA are going to help many more people achieve the dream of owning a home. We at Advisors are excited to see these changes take place and that we now get to be a part of the American dream of homeownership for even more first-time homebuyers.”
*The FHA’s annual MIP is a percentage of the outstanding loan balance. Advisors Mortgage Group is an FHA-approved lender and is not acting on behalf of or at the discretion of HUD/FHA or the federal government.
About Advisors Mortgage Group
With big dreams and even bigger determination, Advisors Mortgage Group, LLC was founded in October 1999 by a single loan officer in a 400-square-foot office in Shrewsbury, New Jersey. In the years since its formation, Advisors has grown to serve not only the greater New Jersey area but also a vast portion of the United States. With branch offices up and down the East Coast and its corporate office in Ocean Township, New Jersey, Advisors Mortgage has established itself as a pillar of excellence in the mortgage industry. The Company’s immense experience is its greatest asset and is the foundation of the success of the Company and every Advisors branch and loan officer.
In 2005, Advisors Mortgage Group was designated by the Federal Housing Authority as a Full Eagle FHA Underwriter. As a Full Eagle, Advisors has been able to expand its loan volume by approving loans, which a majority of the competition could not dream of. The Company has built a platform for a seamless and stress-free mortgage process for all of its customers and has that same mission throughout all of its offices. Advisors understands that success cannot be attained without teamwork and communication, two of the Company’s most important strengths.
Those looking to finance a home or refinance an existing mortgage may contact Advisors Mortgage at 855-LOANS-USA or visit its website at: https://advisorsmortgage.com/