UPDATE: THE REDUCTION IN FHA’S MORTGAGE RATES HAS BEEN SUSPENDED INDEFINITELY.
In this rising interest rate environment, FHA will be passing along a little reprieve to home buyers and home owners that are securing financing through FHA. The annual insurance rates are decreasing by .25%.
For a person seeking a loan amount of $500,000 and putting down 3.5%, this decrease will save them $104.17/month, or $1250 for the year. This is great news, and may provide additional benefits for FHA over Conventional, in terms of total monthly housing payment. Good news for the beginning of the year!