The monthly mortgage payment mainly pays off Principal and Interest (PI). But most lenders also include local real estate property Taxes and homeowner’s Insurance (PITI), and private mortgage insurance (PMI), if applicable.
If you are refinancing, compare what is and isn’t included in your financing options. Watch this vignette and it’ll make sense.
HUD: Mortgagee Letter 2015-01
Earlier this morning, January 9, 2015, the Federal Housing Administration (FHA) released an official statement regarding the Mortgage Insurance reduction. The letter stated the reduction from 1.35% to 0.85% would take place on January 26th, 2015.This means that all FHA loans originated on or after January 26th will pay the reduced monthly Mortgage Insurance – a full half a point less than home buyers who bought before January 26th. You can read the official letter here.