Mortgage insurance costs dropping for some new homebuyers. Here's how much you could save.

Mortgage insurance costs are dropping for some new homebuyers, offering a much-needed break from rising home prices. According to the Mortgage Bankers Association, mortgage insurance premiums (MIPs) have decreased for the first time in nearly a decade.

For those unfamiliar, mortgage insurance is an extra cost that borrowers pay when they don’t have a 20% down payment. It’s a way for lenders to protect themselves against potential losses.

The decrease in MIPs is a welcome news for those looking to buy a home. It could mean significant savings for new homebuyers.

For those with a credit score of 580 or higher, the cost of mortgage insurance dropped from 1.35% to 0.85%. That’s a savings of 0.50%.

For those with a credit score between 500 and 579, the cost of mortgage insurance dropped from 1.75% to 1.25%. That’s a savings of 0.50%.

For those with a credit score between 500 and 579, the cost of mortgage insurance dropped from 2.25% to 1.75%. That’s a savings of 0.50%.

The savings may not seem like much, but it can add up over time. For example, if you take out a $200,000 loan with a 10-year term and a 4% interest rate, you could save nearly $3,000 over the life of the loan.

The decrease in MIPs is a great opportunity for new homebuyers to save money. It’s also a good reminder to shop around for the best mortgage rates and terms.

So if you’re in the market for a new home, take advantage of the lower mortgage insurance costs and start shopping around for the best mortgage deal. You could save thousands of dollars in the long run.