FHA Lowers Annual Mortgage Insurance Premiums

In a move that will make home loans more affordable, the Federal Housing Administration (FHA) announced today that it will reduce the annual premiums most of its borrowers pay on mortgage insurance premiums by 0.25 percentage points from 0.85% to 0.60%. The agency said that the new lower premium rates are projected to save new FHA-insured home owners an average of $500 this year.

NAHB supports this action to further boost the housing recovery and reduce the cost of housing for creditworthy borrowers, particularly for first-time home buyers.