The Federal Housing Administration made an announcement on Monday, January 9^th to cut fees, effectively lowering the financing cost for first-time home buyers. Set to take effect January 27^th, the fee cut may alleviate the burden of rising interest rates for entry level buyers. Mortgage insurance premium fees would be reduced by a quarter of one percent, or 25 basis points, providing first-time home buyers who lack down payment capital with a little relief in their loan cost. The change is projected to save first-time home buyers an average of $500 in 2017.

According to National Association of REALTORS® President William Brown, “Dropping mortgage insurance premiums today will mean a whole lot more responsible borrowers are suddenly eligible to purchase a home through FHA.”

Read more on this recent news here.

NOTE: researched and written by Britni Clark, Virginia REALTORS® Marketing and Communications Coordinator.