FHA To Lower Cost Of Mortgage Insurance

Dated: 01/15/2015

Views: 389

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."

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

Fourth Of July At The Bellevue Downtown Park

It's become our family tradition to watch Independence Day Fireworks at the Bellevue Downtown Park across the street from Bellevue Square Mall.  The park was recently completed - it used

Read More

Remote Geological Calamities Shape An Area Of Great Natural Beauty At Copalis Beach

Copalis Beach, WashingtonThe area around the obscure, declining town of Copalis Beach on the Washington Coast nonetheless contains a collection of remarkable and little-known attractions. The area

Read More

Bellingham Home For Sale Country Feel In The City

Country feel in the city. Charming 3 bed, 1 bath move in ready home, on a large sunny private lot on a dead end street. Lots of updates, rewired and re-plumbed, beautifully refinished

Read More

A Sunny Morning In DuPont Washington

I arrived early for an appointment in DuPont, Washington and searched around for something to do on the mapping app of my phone.  I made a quick visit to Clock Tower Park, and then found a

Read More