FHA Mortgage Insurance Premiums
The Federal Housing Administration announced recently that they plan to drastically reduce the costs associated with obtaining a mortgage in order to provide more Americans the chance to purchase their own home. The cost of FHA mortgage insurance premiums will be cut from 1.35% of a loan’s value to about 0.85%, which will ultimately result in first-time home buyers saving $900 a year on payments for their mortgage. This incentive is not just limited to first-time buyers only, and people who refinance their FHA loans can expect similar savings on FHA mortgage insurance premiums. This plan is intended to make buying a home more accessible for average, working class Americans, as a spokesperson for the White House stated, “Too many creditworthy families who can afford – and want to purchase a home are shut out of home ownership opportunities due to today’s tight lending market”. It is predicted that as a result of this reduction, 250,000 new buyers will be able to purchase a home, which is great news for both potential homeowners and the Miami real estate market as a whole. The housing market has improved dramatically over the past few years, and the White House hopes that with FHA mortgage insurance premiums being reduced will have even more people looking to invest in their own home. This will ultimately result in even greater prosperity for both buyers and sellers.
Both Miami commercial and residential real estate have increased in demand over the past year as a result of various economic factors allowing more people to invest in properties that may otherwise have been out of their price range. With this new plan making mortgages even more affordable, now is the perfect time to purchase the home of your dreams. If you would like more information about Miami Neighborhoods here in South Florida or are interested in checking out any of the Miami Property listings available today, then feel free to contact a RE/MAX agent and they would be happy to assist you with all of your Miami real estate needs.