Major news regarding FHA loans came out Wednesday, January 7th. In a move designed to bring more first-time homebuyers into the housing Market, President Obama said the Federal Housing Administration (FHA), the government insurer of home loans, will lower its annual insurance premiums from 1.35 percent to .85 percent. The White House said the move was part of the president's efforts "to expand responsible lending to creditworthy borrowers." What does this mean to prospective homebuyers?  On a $100,000 loan, the cost of the mortgage insurance would be reduced from $112.50 to approx $71.00 per month. On a $150,000 loan, the monthly cost of mortgage insurance would be reduced from $168.75 per month to $106.25 per month.  

 

  Bill Arey - REALTOR at ReMax First  The Pat Wattam Team