As Denver residents know all too well, the Mile High City is experiencing growth and expansion like we’ve never seen before. If you’re considering jumping into homeownership, according to
Lower Rates For FirstTime Homebuyers Thanks To FHA Rate Cuts
According to Bloomberg News, the Obama administration cut mortgage-insurance premiums charged under a government program that’s popular with first-time home buyers who have little money for a down payment.
Earlier last week the Department of Housing and Urban Development (HUD) said the annual fees charged by the Federal Housing Administration (FHA) to guarantee mortgages it backs are being cut by a quarter of a percentage point. With the reduction, the annual cost for most borrowers will be 0.60 percent of the loan balance.
The reduction, which lowers the cost of a home for those who use the FHA, is charged to mortgage borrowers. HUD on Monday said the fee cut would save new FHA-insured homeowners an average of $500 this year. The cut would take effect on Jan. 27.
In a statement reacting to the news, William Brown, president of the National Association of Realtors said that dropping mortgage insurance premiums today will mean a whole lot more responsible borrowers are suddenly eligible to purchase a home through FHA.
The change could be reversed after President-elect Donald Trump takes office; however, HUD Secretary Julian Castro said he had no reason to believe the cut would be altered by the Trump administration.
If you’re ready to take advantage of these more favorable rates and become a homeowner in the Denver area, the experienced pros at Metrowest would love to help you start the process. Give us a shout today!
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