Plan to Decrease FHA Mortgage Insurance!

Plans for decrease for FHA mortgage insurance! Good news for home buyers!!!


In an effort to expand homeownership among lower-income buyers, PresidentBarack Obama plans to cut mortgage-insurance premiums charged by a government agency.
The annual fees the Federal Housing Administration charges to guarantee mortgages will be cut by 0.5 percentage point, to 0.85 percent of the loan balance, Julian Castro, secretary of the Department of Housing and Urban Development, said today during a conference call with reporters. Under the new premium structure, FHA estimates that 2 million borrowers will be able to save an average of $900 annually over the next three years if they purchase or refinance homes.
Shares of private insurers that compete with the FHA fell on the news, which Obama plans to discuss during a visit to Phoenix tomorrow.

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