FHA cut the annual mortgage insurance premium from .85% down to .60%, it was announced yesterday. **UPDATE 1/20/17 PRESIDENT TRUMP’S ADMINISTRATION SUSPENDED THIS CUT INDEFINITELY, SO THIS WILL NOT TAKE EFFECT ON 1/27/17 AS WAS PLANNED.**
The current U.S Housing and Urban Development Secretary Julian Castro said that this could save those getting FHA-insured loans closing or disbursing on or after January 27, 2017 an average of about $500 this year.
According to a CNBC article, he said, “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.”
This is great news for homebuyers who intend to use an FHA-insured mortgage to buy a home this year.
For more information about buying a home in Baltimore using an FHA loan, please contact me. I would love to help!