The Federal Housing Administration made an announcement on Monday, January 9th to cut fees, effectively lowering the financing cost for first-time home buyers. Set to take effect January 27th, the fee cut may alleviate the burden of rising interest rates for entry level buyers. Mortgage insurance premium fees would be reduced by a quarter of one percent, or 25 basis points, providing first-time home buyers who lack down payment capital with a little relief in their loan cost. The change is projected to save first-time home buyers an average of $500 in 2017.
According to National Association of REALTORS® President William Brown, “Dropping mortgage insurance premiums today will mean a whole lot more responsible borrowers are suddenly eligible to purchase a home through FHA.”
NOTE: researched and written by Britni Clark, Virginia REALTORS® Marketing and Communications Coordinator.