UPDATE AS OF 1/20/2017: HUD Suspends FHA mortgage MIP Cut, see here for more details.
On January 9, the Federal Housing Administration (FHA) announced that they will be reducing the annual mortgage insurance premiums (MIP) for most mortgages (closing on or after 1/27/17) by 0.25%! This is GREAT news for eligible homebuyers! These new rates are projected to save new FHA-insured homeowners an average of $500 in 2017.
HUD Secretary, Julian Castro, said consumers are facing higher credit costs as mortgage interest rates increase.
“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” said Castro.
“This is a fiscally responsible measure to price our mortgage insurance in a way that protects our insurance fund while preserving the dream of homeownership for credit-qualified borrowers.”
“We’ve carefully weighed the risks associated with lower premiums with our historic mission to provide safe and sustainable mortgage financing to responsible homebuyers. Homeownership is the way most middle class Americans build wealth and achieve financial security for themselves and their families,” Ed Golding, principal deputy assistant secretary for HUD’s Office of Housing, said in the report.
Call The Marr Team at 214-620-0411 to help you find the home of your dreams, then call The Gail Hillman Mortgage Team to help you finance it!