Lower Rates For FirstTime Homebuyers Thanks To FHA Rate Cuts

Dated: 01/17/2017

Views: 1044

Image title

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!

Blog author image

Ken Blevins

Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 23 years of experience in collections, foreclosure/bankruptcy, los....

Latest Blog Posts

Denver Market Sees Cool Down In September

According to a recent report from the Denver Metro Association of Realtors (DMAR), Denver metro home inventory is up 7 percent from last month, and more than 16 percent year over year. That’s

Read More

Denver Sellers Market Shifting To Buyers

Housing inventory continues to be in an issue in Denver, which often puts sellers at an advantage. As inventory numbers are slowly creeping up in the Mile High City, industry pros are seeing

Read More

What Colorado Zip Code Is Second Hottest In The Nation

According to Realtor.com, our very own Colorado Springs came in second on the “2018 Top 10 Hottest ZIP Codes” list. The rankings come from an analysis of 32,000 ZIP codes, based on the time it

Read More

Broomfield And Highlands Ranch Make Best Place To Live In America List

Two of Denver’s suburbs made the "Best Places to live in America" list, compiled by Money magazine and Realtor.com. Highlands Ranch came in at #8, while Broomfield took the #18 spot.According to

Read More