Bipartisan Bill Could Reduce Insurance Premiums for First-Time Homeowners

U.S. representatives Gregory Meeks (D-N.Y.) and Pete Sessions (R-Texas) recently introduced the Mortgage Insurance Freedom Act, a bipartisan bill that would allow Federal Housing Administration (FHA) borrowers to stop paying mortgage insurance premiums (MIP) once they reach a certain level of equity in their home. Unlike private mortgage insurance, which ends automatically when a homeowner's loan-to-value ratio reaches 78%, FHA borrowers currently must pay MIP for the life of their loan, which disproportionately affects lower-income and minority homeowners, according to Meeks.

“This legislation is designed to help Americans keep more of their hard-earned money in their pocket and make home ownership more affordable,” Congressman Meeks said. “The Mortgage Insurance Freedom Act will empower first-time buyers and young families to get ahead by reducing monthly payments and encourage faster equity accumulation. FHA borrowers will save hundreds of dollars annually which will allow them to allocate these funds towards savings, investments, and everyday expenses.” Read more