Biden Administration, Cuts Some Mortgage Fees , as Housing Costs Remain High.
Biden Administration, Cuts Some Mortgage Fees , as Housing Costs Remain High.
On February 22, the Biden administration announced a change that could save homeowners an average of $800 on home financing costs in 2023.
On February 22, the Biden administration announced a change that could save homeowners an average of $800 on home financing costs in 2023.
CNN reports that the change would impact an estimated 850,000 homeowners, mostly low- and middle-income, as well as first-time buyers.
The move, which affects mortgage insurance premiums on loans insured by the Federal Housing Administration, will reduce annual premiums from 0.85% to 0.55%.
CNN reports that the change comes as part of an attempt to address the ongoing housing crisis in the United States.
According to Marcia L.
Fudge, the Secretary of Housing and Urban Development, the change is expected to increase access to homeownership for Americans.
According to Marcia L.
Fudge, the Secretary of Housing and Urban Development, the change is expected to increase access to homeownership for Americans.
As we reduce housing costs for people with FHA mortgages, we continue our work to address longstanding disparities in homeownership, Marcia L.
Fudge, Secretary of Housing and Urban Development, via CNN.
CNN reports that the cost of home financing has skyrocketed in the past year, with mortgage rates now double what they were in 2022.
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The high cost has priced out many would-be homebuyers who could no longer qualify for a loan.
CNN reports that the action is predicted to have a limited impact on the housing market, as the higher cost of monthly payments outpaces the savings.
In addition to this, only 811,362 out of 5.7 million total 2021 loans were FHA loans, equaling just about 14.3%.
