On Wednesday, February 22nd, HUD Secretary Marcia Fudge made the announcement that for FHA borrowers, their annual mortgage insurance premiums will be reduced by 30 Basis Points which translates to .3% of the loan balance. Up to 850,000 borrowers could benefit, the majority of which will see their premiums jump down from 0.85% to 0.55%.
Fudge went on to explain that this reduction will apply to most Single Family Title II forward mortgages insured by the FHA including single-family homes, condos, and manufactured homes. For a borrower purchasing a single-family home with a $265,000 mortgage, this will mean an average savings of $800 a year.
The lower premium won’t just save borrowers money, but could allow more people to qualify for a mortgage–giving working-class families an easier path towards home ownership. The annual premium reductions are effective for mortgages endorsed for insurance by FHA on or after March 20, 2023. To learn more about how you can take advantage of this premium reduction, email us or give us a call at (323) 412-9060.