FHA To Lower Cost Of Mortgage Insurance

Dated: 01/15/2015

Views: 473

In order to bring more first-time homebuyers into the housing market the Federal Housing Administration also known as FHA, has decided to lower the mortgage insurance premium from an annual rate of 1.35% 2.85%. on it's loans that only require a 3.5% downpayment.

HUD Secretary Julian Castro said "This action will make homeownership more affordable for over 2 million Americans in the next three years." This will no doubt stimulate the economy as well, as more homeowners are able to come into the market with a little lower payment.. For the typical FHA borrower this premium reduction means a savings of about $80 per month. This is especially helpful for first-time home buyers, which are the majority of FHA's business. 

In a recent speech Pres. Obama said "Now that we've made it harder for reckless buyers to buy homes that they can't afford, let's make it a little easier for qualified buyers to buy homes they can't afford."

Blog author image

Michael Eisenberg

Michael was born and raised in Brooklyn NY. He graduated from Brooklyn College with a degree in Mathematics. His first job out of college was as an engineer tracking satellites. His last career before....

Latest Blog Posts

Birch And Barley Displays And Offers Rare Beer

Who doesn't love a good beer? And rare beers can be interesting (or maybe not), depending upon your taste "buds."Birch & Barley celebrated rare beers last Saturday, furnished by Sierra Nevada

Read More

Bellingham Real Estate Market Report January 2018

Bellingham Real Estate Market Report – January 2018To see the extensive Bellingham Real Estate Market Report for January Click HereHere’s a quick look at the Bellingham Real Estate Market

Read More