208-254-2090
208.639.8824

FHA to lower cost of mortgage insurance

On January 20th, 2015

Posted In:
Articles

Source: money.cnn.com By Chris Isidore

In an effort to make owning a home more affordable, the Federal Housing Administration will dramatically cut the costs associated with the mortgages it backs.

Premiums for FHA mortgage insurance, which is designed to protect the agency in case a borrower defaults on a loan, will be cut from 1.35% of a loan’s value to about 0.85%, the White House said in a statement Thursday.

As a result, a typical first-time homebuyer will save $900 a year on their mortgage payments. Existing homeowners who refinance into an FHA loan will see similar savings.

“Too many creditworthy families who can afford — and want to purchase — a home are shut out of homeownership opportunities due to today’s tight lending market,” the White House said.

The White House estimates that the lower premiums will enable up to 250,000 new buyers to purchase a home.

To continue reading click here

Comments are closed.

  • Listings In Popular Areas

  • Recent Posts

  • Sheila's goal is to not only retain every client's business for life, but leave them so happy with her service that they are compelled to refer her to everyone they know. Her success stems from working hard for all of her clients and having fun during the process.
    HomeTeamRecommendationsToolsArticlesContact
    Privacy PolicyTerms & Conditions
    © Copyright 2018 - Sheila Smith Real Estate Group - All Rights Reserved.
    facebookbuilding-omobileinstagrampinterest-p