The mortgage insurance reduction policy will save an average of 800 and isBuilt to advance racial equity in the housing market with cooperation from the FHA and HUD. secretary of Housing and Urban development Marcia fudge was joined by vice president Kamala Harris in rolling out the program at Bowie State University recently. HUD reported in 2022 that 80% of FHA borrowers are first-time homebuyers and more than 25% are homebuyers of color. The policy aims to benefit People who have been systematically underserved.
"Home ownership is an essential part of the American dream," Harris said. "It is so much bigger than a piece of property. For so many people, a home is more than simply a house. A home represents financial security, an opportunity to build wealth and equity that can help put your child through college, afford retirement.
. . .I am proud to announce that, starting on March 20th, we are reducing mortgage insurance payments for all new FHA homeowners by nearly 40%," Harris said.
According to HUD, the premium for an FHA-insured mortgage is being cut 30 percentage points, from the current 0.85%, to 0.55% for most homebuyers. Buyers pay the premium on top of interest rates and monthly principal amounts, in order to obtain the insured mortgages.
"What this means is that on average homeowners will pay at least $800 a year less on their mortgage. And that's $800 more in your pocket for household expenses," Harris said.
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