FHA To Reduce Annual Insurance Premiums PMI
HUD announced earlier this month that they would be lowering the annual insurance premiums, otherwise known as PMI. FHA says that these accounts are healthy and that now is a great time to reduce the overall annual premium. While this isn’t going to make it so everyone can get a loan that couldn’t before it’s a welcome decrease that will save a few hundred dollars a year and could help marginal home buyers be a little better overall on their budgets.
The FHA PMI reduction will significantly expand access to mortgage credit for these families and is expected to lower the cost of housing for the approximately 800,000 households who use FHA annually.
FHA’s new annual premium prices are expected to take effect towards the end of the month (JAN 2014)
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