Lower FHA Mortgage Insurance – FHA Loan Nevada – Mortgage Loans in Las Vegas
Exclusive Mortgage Rates on FHA Loan Nevada Information
Lower FHA Mortgage Insurance announced Wednesday by The White House. The Federal Housing Administration will significantly lower the fees it charges borrowers, a move that could save home buyers hundreds of dollars annually and help jump-start the on mortgage rates on FHA loans housing market.
The “annual premiums” on mortgage rates on FHA loans, an especially popular source of financing for first-time home buyers, have increased five times since 2010. They jumped from .55 percent of a loan’s value to 1.35 percent today.
FHA Mortgage Rates
Those fees, which are tacked onto the monthly mortgage rates on FHA loans payment, will drop to .85 percent at the end of the month. The White House projects the lower fees will entice 250,000 buyers to take out FHA loans in the next three years, and that the new borrowers will save an average of $900 annually.
President Obama outlined a lower FHA mortgage insurance plan about the housing market, which has been struggling to fully recover in part because on mortgage rates on FHA loans costs are high and access to credit remains tight for many Americans.
The FHA mortgage rates policy will help normalize the national housing market and make it easier for first-time and under-served borrowers to buy homes while protecting taxpayers from the risky lending practices that led to the crash.
Mortgage Loans in Las Vegas
Realtors support responsible lending to qualified buyers; this is essential for building strong communities.
This Lower FHA Mortgage Insurance is not about repeating the mistakes of the past, in which under-qualified buyers received loans they could never repay. This 0.5% reduction is a good balance – it is the right policy at the right time.
The FHA mortgage rates insurance premiums had become so expensive that last year alone, roughly 234,000 creditworthy borrowers were priced out of the market. Thankfully, the Administration recognized the that shutting out home buyers and lowering the fees would not put its funds at risk.
Economists at the National Association of Realtor’s estimate that the fee reduction will price in an additional 1.6 million to 2.1 million renters along with many trade-up buyers, resulting in 90,000 to 140,000 additional annual home purchases based on the standard affordability limits at the FHA and conventional market and dynamics in the housing finance market.
Call Robert Ratliff at Ratliff Realty Group with RE/MAX Las Vegas.