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.

Source: www.hud.gov

Related Articles

You may have found your dream home, but it might remain a dream without approved financing. Bank statement loans, as the name implies, use bank statements to determine your income. They are a non-qualified mortgage product that offers financing to homebuyers who may not be eligible for a traditional mortgage…
Read More of the post Non-Qualified Mortgage: Bank Statements

The supply of houses on the market has fallen from an average of 1.6 million units monthly in 2018 and 2019 to just over 1 million in 2021 – and the monthly figures for this year are lower still. Fewer homes available and high demand means home buyers must leverage…
Read More of the post Benefits of Pre-Approval: Get the Upper Hand

Your first time buying a home will be exciting, offering a window into the setting of your future. At Homebridge, we delight in the opportunity to help first-time homebuyers because we are reminded of what home truly means and the positive difference it can make in people’s lives. Accordingly, we…
Read More of the post 4 Stops Along the Road to First Time Homebuying

In honor of Earth Day, consider these 10 ideas for implementing energy-efficient improvements throughout your home. Not only will these strategies benefit the environment by reducing your carbon footprint, but they will help you save money by improving your energy bill as well. No matter the time of year, improving…
Read More of the post 10 Ways to Make Your Home Energy Efficient