FHA Mortgage Insurance Premium Decrease

The White House has Announced that in an effort to make homeownership more accessible and sustainable FHA will reduce annual mortgage insurance premiums by 0.5% from 1.35% to 0.85%.

For the typical first-time homebuyer, this reduction will translate into a $900 reduction in their annual mortgage payment. Existing homeowners who refinance into an FHA mortgage will see similar reductions to their mortgage payments as well. In total, this action will help millions of families save billions of dollars in mortgage payments in the coming years, helping to support the housing market recover.

*Effective January 26, 2015

Office of the Press Secretary.

“FACT SHEET: Making Homeownership More Accessible and Sustainable”

www.whitehouse.gov

 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.