FHA Announces: Mortgage Insurance Reduction
The Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), is bringing some welcome news to homebuyers everywhere! The FHA is reducing mortgage insurance by 30 basis points. Monthly mortgage insurance fees are going from 0.85% to 0.55% for most new borrowers seeking a mortgage insured by the FHA. It’s estimated that homebuyers will save an average of $800 annually, this bringing down the cost to get into a home and reducing monthly payments.
This is excellent news for all new borrowers looking into buying or refinancing their homes in 2023. As government backed mortgages reduce the financial burden for their borrowers, more people will be able to obtain homeownership. This is especially helpful after many potential home buyers were priced out of the market in recent years due to soaring property values, interest rate growth, and inflation.
Between this reduction in mortgage insurance, the availability of seller contribution to buyer’s closing cost, and down payment assistance programs, there is now more buying power for buyers than there has been in a long time.
If you would like to know more, get in contact with us and we will get you connected with our lending partners to explain what your options are.