As the nation’s housing market continues to improve, U.S. Housing and Urban Development Secretary Julián Castro announced today the Federal Housing Administration (FHA) will reduce the annual premiums most borrowers will pay by a quarter of a percent. FHA’s new premium rates are projected to save new FHA-insured homeowners an average of $500 this year.
FHA is reducing its annual mortgage insurance premium (MIP) by 25 basis points for most new mortgages with a closing/disbursement date on or after January 27, 2017. Click here for a full schedule of the new premium rates as found in FHA’s mortgagee letter.
This premium cut “will significantly expand” access to mortgage credit and lower the cost of housing for the approximately 1 million households who are expected to purchase a home or refinance their mortgages using FHA-insured financing in 2017.
As always, if you’d like to learn more about what reduced premiums mean for your clients, give your HomeBridge Mortgage Loan Originator a call today. We’re proud to be your Partner for the Path Ahead.