FHA will be lowering the annual mortgage insurance premiums from roughly 1.35% to .85%. The move enables the home buyer to buy a home priced at roughly $17,000 higher and still have the same payment.
This is also great news for existing home buyers with an FHA loan. With an interest rate of 4% or higher, they could be saving $150 per month or more between the combination of the announcement and lower interest rate environment. The official announcement is to be announced before the end of January.
The Radcliffe Group
Keller Williams Realty Southwest