The Federal Housing Administration (FHA) has announced a 30-basis point reduction in mortgage insurance premiums (MIP) for most borrowers, reducing costs by an average of $800 per year for about 850,000 homebuyers and homeowners in 2023. This move, which has been widely anticipated, will bring MIP to 55 basis points for most borrowers, down from 85!
What this means for home buyers
The MIP cut will have a significant impact on the mortgage market, providing much-needed relief for home buyers. With the reduction in premiums, borrowers will be able to save more money and expand their options for homeownership. We believe this change will especially benefit minority homebuyers and low to moderate-income households, who are predominantly served by FHA loans.
How Southern Trust Mortgage can help
We are excited to see this change, as it will lower mortgage payments for qualified FHA borrowers, including those in low and moderate-income households. With the steep rise in mortgage rates and home prices, this comes just in time for the spring buying season, providing critical relief for those looking to purchase a home.
With over 25 years of experience under our belts, we at Southern Trust Mortgage are committed to helping our clients achieve their dreams of homeownership. Our team of loan officers will work with you to find the right loan program that fits your specific needs, including FHA loans.
Source: WhiteHouse.gov
