New FHA borrowers will get a reduction in costs on their mortgages in 2017, per Housing and Urban Development Secretary Julian Castro. “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 a fiscally responsible measure to price our mortgage insurance in a way that protects our insurance fund while preserving the dream of homeownership for credit-qualified borrowers.”
The Federal Housing Administration, who insure thousands of low down-payment loans across the country, is vowing to reduce the annual mortgage insurance premium by 25 basis points and will save homeowners an average of $500 this year.
Currently, 1 in 6 mortgages are backed by the FHA. An FHA loan is a government-backed mortgage that comes with a lower down-payment of 3.5%, and has been a boon to home ownership rates and allowed many people to experience the dream of home ownership.
With many first-time homebuyers still struggling to get into the home ownership market, this could be a huge help. Home values have been rising with inventory low, and although rates are still low, they have begun to rise again. HUD officials believe that this will save money for roughly one million homeowners who will buy a new home or refinance with an FHA loan this year.
However, all the news isn’t as rosy. This rollback could be rolled back by the incoming Trump administration. The administration is under no obligation to continue this program after January 20th. That’s why it’s imperative to get your FHA loan locked in, so you can ensure that you can capitalize on the lowered rates and save money.
If you are ready to lock in your FHA loan at the reduced interest rate, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, or Indianapolis at (317) 550-1515. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?