The Nov. 8 midterm elections determine which party controls the House and the Senate for the next two years, and the results could have major implications for the housing market at a pivotal point in its post-pandemic slowdown. If Republicans gain control of the House, a first-time buyer tax credit that would give first-time homebuyers up to $15,000 in refundable federal tax credits could be squashed, and a GOP House could also impact funding for rehab housing.
Regardless of the midterm results, prospective mortgage borrowers can expect lower FHFA premiums, but those loans come with a mortgage insurance premium, which is an additional payment that homeowners will make to secure the loan, according to MarketWatch.
FHA borrowers currently pay 0.80% per year in annual premiums, according to the agency’s website, for loans less or equal to $625,000 and a downpayment of 5% or more.
If the mortgage insurance premium rate is cut, that could save a homeowner thousands of dollars in one year if they’re purchasing a new home or refinancing.
For a $150,000 home, the premium is $1,200 a year (or $100 per month).