Great News for FHA Homebuyers

Reduce FHA Premiums to Help Make Mortgages More Affordable.
These changes will save borrowers an average of nearly $1,000+ a year. 

·    FHA is reducing annual FHA mortgage insurance premiums by 0.5 percentage point from 1.35 percent to 0.85 percent, an average savings of $900 annually for new borrowers.

·    Lowered premiums will help more than 800,000 homeowners save on their monthly mortgage costs and enable up to 250,000 new homebuyers to purchase a home.

·    These steps will help support home sales, lower housing expenses for affected households, and help bring more balance to the housing market.

Mortgage insurance, required of FHA borrowers, is meant to protect the lenders in case of default by allowing them to recoup some of their losses.

Over the next three years, the FHA projects the rate drop will allow 2 million borrowers to save an average of $900 a year when they purchase or refinance a home. The agency also estimates these savings will encourage 250,000 first-time buyers to enter the market.

Learn more by visiting link below:
www.whitehouse.gov/the-press-office/2015/01/07/fact-sheet-making-homeownership-more-accessible-and-sustainable

Thinking about buying or selling? Contact me today.