January 16, 2015
The Federal Housing Administration is cutting the annual insurance premiums charged to borrowers, making these loans more attractive to creditworthy, lower-risk borrowers.
The New York times reports that premiums will decrease by 0.5 percentage point, effective Jan. 26. Changes are expected to put homeownership within reach of more people, and lower premiums on FHA loans will make them more competitive with conventional loans requiring private mortgage insurance.
