In a move that could make homeownership more affordable to more families, President Obama is directing the Federal Housing Administration (FHA) to reduce mortgage insurance premiums, HousingWire reports. FHA will reduce annual mortgage insurance premiums by 0.5 percentage points from 1.35 percent to 0.85 percent, according to a fact sheet put out by the Obama administration.
“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.” – Fact Sheet at www.whitehouse.gov
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